Update (0825ET): Romania's prime minister will resign on Monday after a conservative opposition leader who aligned himself with Donald Trump scored a resounding first-round victory in the Black Sea nation's presidential election.

Bloomberg reports, that Marcel Ciolacu informed coalition partners of the decision to submit his resignation in a meeting Monday in Bucharest, according to people familiar with the decision who spoke on condition of anonymity. The government will be led by an interim premier until coalition parties choose Ciolacu's successor. There are no current plans for an early election.

The prime minister's decision was a response to the electoral defeat of the coalition's preferred candidate in Sunday's first-round contest, in which George Simion of the ultranationalist Alliance for the Union of Romanians secured more than 40%.

He'll face off against Nicusor Dan, the centrist mayor of Bucharest.

As Goldman notes, as a result of his outperformance relative to opinion polls in the first round, the probability of Simion winning the second round has risen sharply in betting markets, from 30% probability prior to the vote to 69%, with Dan at 31%.

As a reminder, the contest was the second attempt to choose a president after the shock victory of another far-right fringe candidate last year prompted accusations of Kremlin interference and the top court's cancellation of the ballot. The unexpected first-round victory in November of Calin Georgescu, who has been banned from running in Sunday's race, triggered Romania's biggest political crisis since the fall of communism.

While the Romanian people have spoken a second time, the market seems less excited as Romanian government bonds fell after the first round of a presidential election delivered the victory of a far-right figure and eliminated the candidate backed by the ruling coalition.

The yield on the 10-year domestic notes jumped 20 basis points to 7.79%, the highest since the end of January; yields on shorter maturities also rose.