Turkish Treasury borrows $703M through auctions

By Aysu Bicer and Yunus Girgin

ANKARA (AA) - The Turkish Treasury borrowed 5.6 billion Turkish liras ($703 million) from domestic markets on Tuesday, according to an official statement.

The Treasury and Finance Ministry announced that some 2 billion Turkish liras ($250 million) in floating rate note bonds – new issuance – were sold in the first auction.

The Treasury bill will be settled on Wednesday and mature on Nov.17. The total tender amounted to 5 billion Turkish liras ($626 million) with a 41% accepted/tendered rate.

The term rate of 2,548-day government bonds was accepted at 6.86%, while the annual simple and compound interest rates were 13.72% and 14.19%, respectively.

In the second auction on Tuesday, the Treasury issued 10-year Fixed Coupon Bonds – new issuance – totaling 3.6 billion Turkish liras (nearly $451 million).

The bonds will be settled on Wednesday with a maturity date of Nov.13, 2030.

According to the ministry, the total tender in the second auction amounted to 6.3 billion Turkish liras ($790 million), with a 56.1% accepted/tendered rate.

The term rate of 3,640-day government bonds was accepted at 5.98% of the periodic interest rate, while the annual simple and compound interest rates were 11.96% and 12.32%, respectively.