Citi Sees Romanian Bonds Extending Gains With Focus on Deficit

Romanian government bonds are likely to extend their advance this year as the country works to reduce the budget deficit and inflation is expected to move closer to target, according to economists at Citigroup Inc. and ING Groep NV.

The Black Sea nation has seen its debt securities recover after unprecedented political and market turmoil in 2025, but they still carry one of the highest risk premiums in the European Union. The yield on the 10-year leu-denominated notes has fallen by more than 40 basis points in the past three months, the biggest decline among EU peers, trading at 6.72% on Wednesday, according to data compiled by Bloomberg.