Turkish Treasury’s borrowing costs rise in debt auctions.

By bne IntelliNews March 5, 2014

Turkey’s Treasury was forced to pay higher than expected borrowing costs in the debt auctions it held on Tuesday due to international geopolitical concerns and domestic political tension. It borrowed a total of TRY 8.7bn (EUR 2.9bn) on Tuesday, selling 2-year and 10-year fixed-coupon bonds as well as 7-year floating rate notes.

The Treasury sold TRY 1.79bn of the benchmark 2-year paper (re-issue) at a yield of 11.33% versus a market consensus forecast of 11.20%. Non-competitive sales amounted to TRY 1.26bn and demand for the bond stood at TRY 4.9bn. For comparison, the Treasury’s borrowing cots was 11.18% at an auction it held in February for a similar 2-year fixed coupon.

Sales of the 10-year bond (re-issue) stood at TRY 1.62bn at a yield of 10.81%, slightly above the forecast of 10.73%. The Treasury also sold TRY 1.3bn of the paper to primary dealers. Demand for the 10-year bond was TRY 4.46bn.

The Treasury also sold TRY 2.7bn of 7-year floating rate notes at the yield of 9.11% and non-competitive sales amounted to TRY 2.3bn.

Consequently, the Treasury has raised a total of TRY 15.2bn through five auctions it has held this month ahead of its TRY 16.7bn of domestic debt redemption on Wednesday.

Related Articles

Gulen hits out at Erdogan in Washington Post as Turkish leader arrives for Trump talks

Fethullah Gulen, the exiled cleric accused by the Turkish government of orchestrating last year’s attempted coup, on May 16 accused President Recep Tayyip Erdogan of “doing everything he can ... more

Police detain 53 Istanbul bourse ex-employees citing Gulen claims

Turkish prosecutors have ordered the detention of 102 former Borsa Istanbul stock exchange employees, with 53 arrested already, local media reports suggested on May 12. The employees had ... more

EBRD cuts 2017 growth forecast for Turkey to 2.6% from 2016's 2.9%

GDP growth in Turkey is now projected to moderate to 2.6% in 2017 from 2.9% in 2016, reflecting increased capital ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss