Turkish Treasury borrows $768.4M through auction

The Turkish Treasury borrowed some 21.9 billion Turkish liras (around $768.4 million) from domestic markets in two different auctions.

Duvar English

The Turkish Treasury on Nov. 7 held to auctions for domestic markets to issue governments bonds and borrowed nearly 21.9 billion Turkish liras (around $768.4 million), according to an official statement from the Finance and Treasury Ministry.

The first auction was held for 2-year fixed coupon bond to be mature on Oct. 1, 2025.

In the auction, the simple interest rate was 38.48 and the compound interest rate was 42.18. While the nominal bid reached 23.6 billion liras, nominal sales were 5.8 billion liras and net sales were 4 billion liras.

The entire 3 billion lira offer from the public was met in the auction, 7.4 billion lira offers were received from market makers, and sales of 4 billion lira were made to this segment.

In the second auction, a 10-year fixed coupon government bond with a 13.1% semi-annual coupon payment was reissued.

The simple interest rate in the auction was 29.77, while the compound interest rate was 31.98. The nominal bids in the auction amounted to 16.6 billion lira, and the nominal sales were 7.9 billion lira, with a net sale of 7.1 billion lira.

Market makers submitted offers of 4.6 billion lira in this auction, and 3 billion lira in sales were made to this segment. 

As a result, the Treasury borrowed a total of 21.9 billion lira in the two auctions.