The Treasury successfully placed 5-year bonds in local currency at a semi-annual coupon of 7.5%. The yield in the auction declined to 15.15%, below the consensus forecast of 15.3%.
The demand was very strong for the bond, so the Treasury covered only 34% of the bids, and borrowed net TRY 775mn. In the morning, the Treasury sold TRY 1.9bn worth of bonds to primary dealers. In the auction held for 3-year USD-denominated FRN, the bid/cover ratiowas 45%, indicating a net borrowing of USD 302mn.
The annual compound interest rate averaged at 5.06%. The bond pays LIBOR+1.6% interest rate semi-annually. USD 801mn worth of bonds sold to primary dealers in the morning. The Treasury will redeem TRY 2.7bn this week, TRY 2.3bn of which is to the markets.