Turkish Treasury borrows $2.92B from domestic markets

ISTANBUL

The Turkish Treasury borrowed 20.45 billion Turkish liras ($2.92 billion) from domestic markets through auctions and lease certificate issuances on Tuesday.

In the first auction, some 5.02 billion Turkish liras ($718.3 million) in a three-year TLREF-indexed Treasury bill – semiannually, reopen, third issuance – was sold, the Treasury and Finance Ministry announced.

The Treasury bills will be settled on Wednesday and mature on June 21, 2023.

The total tender amounted to 8.8 billion Turkish liras ($1.26 billion) with a 57% accepted/tendered rate.

The Treasury said the term rate of the 1,134-day Treasury bill was accepted at 2.58%, while the annual simple and compound interest rates were 10.31% and 10.71%, respectively.

In the second auction on Tuesday, the Treasury issued eight-year CPI-indexed bonds – semiannually, reopen, eighth issuance – totaling 3.63 billion Turkish liras ($519.36 million).

The bonds will be settled on Wednesday with a maturity date of June 28, 2028.

According to the ministry, the total tender in the second auction amounted to 6.17 billion Turkish liras ($882.8 million), with a 58.9% accepted/tendered rate.

The term rate of 2,968-day government bonds was accepted at 1.24% of the periodic interest rate, while the annual simple and compound interest rates were 2.48% and 2.49%, respectively.

It also issued six-month and one-year fixed-rate lease certificates worth 11.8 billion Turkish liras ($1.69 billion).

According to the ministry's borrowing strategy, the Treasury projects to hold 24 bond auctions and a direct sale of lease certificates this May-July to borrow some 89 billion Turkish liras ($12.7 billion) from domestic markets.