July 09, 2018•Update: July 09, 2018
By Muhammed Ali Gurtas
ANKARA
The Turkish Treasury borrowed nearly 12.5 billion Turkish liras ($2.75 billion) from domestic markets, according to an official statement Monday.
The first auction was held for 11-month zero coupon treasury bills (re-open, second issue), which amounted to 3.54 billion Turkish liras ($782 million), the Treasury Undersecretariat announced.
The treasury bills will be settled on Wednesday and mature on June 12, 2019, while the total tender was 6.22 billion Turkish liras ($1.37 billion) with a 56.9-percent accepted/tendered rate.
The interest rate of the 336-day bills was accepted at a 17.41-percent term rate, with annual simple and compound interest rates of 18.86 and 18.99 percent, respectively.
At a second auction on Monday, the Treasury borrowed 4.89 billion Turkish liras ($1.08 billion) by issuing five-year fixed coupon bonds (semiannually, re-open, second issue), which will be settled on Wednesday and mature on June 14, 2023.
According to the statement, the total tender for the bonds was 9.24 billion Turkish liras ($2.04 billion), with a 53 percent accepted/tendered rate.
The undersecretariat said the term rate of 1,799-day bonds was accepted at 8.66 percent, while annual simple and compound interest rates were 17.33 and 18.08 percent, respectively.
At Monday's third auction, the Treasury issued 10-year CPI indexed government bonds (semiannually, new issuance), which amounted to some 4 billion Turkish liras ($887 million). The bonds will be settled on Wednesday and mature on June 28, 2028.
The total tender for the bonds was 7.55 billion Turkish liras ($1.67 billion) with a 53.1-percent accepted/tendered rate.
The Treasury said the interest rate of the 3,640-day bonds was accepted at an 1.59 percent term rate, with annual simple and compound interest rates of 3.18 and 3.20 percent, respectively.
As noted in the undersecretariat's domestic borrowing strategy, a total of 19 auctions is planned to be held from this June through the end of August.
