The Turkish Treasury borrowed a total of 117,898.4 million liras through the reopening of five-year and eight-year fixed-coupon government bond auctions. Both debt sales reopened existing notes carrying semiannual coupon payments to cover sovereign borrowing requirements.
Five-year bond auction details
In the first auction, the Treasury reopened a 5-year fixed-coupon government bond maturing in 1673 days, carrying a semiannual fixed coupon rate of 16.63 percent. The competitive bidding session generated 29,102 million liras in nominal bids, from which the Treasury accepted 21,912 million liras in nominal sales, yielding net proceeds of 23,700.8 million liras at a simple interest rate of 35.57 percent and a compound interest rate of 38.73 percent.
Public sector institutions placed 15,250 million liras in non-competitive bids, all of which the Treasury accepted in full. Primary dealers submitted 44,916 million liras in non-competitive bids, with allocations to the group reaching 27,000 million liras.
Eight-year issuance results
The second transaction reopened an 8-year paper maturing in 2933 days with a semiannual fixed coupon rate of 13.85 percent. Bidders submitted 34,490 million liras in nominal bids, while nominal sales reached 25,310 million liras, translating into net auction sales of 24,947.6 million liras. The simple interest rate cleared at 32.54 percent. The compound interest rate reached 35.19 percent.
Non-competitive demand for the eight-year note included 5000 million liras from public entities, which met full acceptance by debt managers. Primary dealers lodged 36,832 million liras in non-competitive bids, securing 22,000 million liras from the Treasury across the offering.
Source: Turkish Treasury
