Romania's 10-year bond yield rose to 7.21%, its highest in four weeks, marking a fifth straight increase.
Citi strategist Bhumika Gupta warns larger fiscal slippage risk amid political uncertainty, potentially losing €8 billion from EU recovery funds.
The central bank is expected to defend the leu and keep volatility low, supported by sizable reserves despite the turmoil.
Offshore positioning has reduced after the US‑Iran conflict, keeping bond market behavior well‑behaved but leaving room for further sell‑off if uncertainty persists.