Turkey’s Treasury on September 9 sold a $2bn eurobond (US900123DR82) due 2035 at a coupon rate of 6.95% and a yield to investor of 7.00% (priced at 99.645), the finance ministry said on September 10.

BBVA, Deutsche Bank, Goldman Sachs and JPMorgan acted as intermediaries in the deal.

The spreads over US Treasuries and Turkey’s 5-year credit default swaps (CDS) showed a modest decline compared to the Treasury’s previous auctions.

Turkey’s CDS remain below the 300-level, while the yield on the Turkish government’s 10-year eurobonds is still hovering around the 7%-level.

Turkey currently has a BB-/Stable rating (at three notches below investment grade) from Fitch Ratings, a Ba3/Stable (at three notches below investment grade) from Moody’s Investors Service and a BB-/Stable (at three notches below investment grade) from S&P Global Ratings.

No politics in eurobond business

On September 2, the Istanbul 45th (Asliye Hukuk) civil court of first instance triggered another round of political stress in Turkey by appointing a board of trustees to take over the main opposition Republican People’s Party’s (CHP’s) provincial headquarters in Istanbul.

As of September 10, the CHP continued to show restrained reactions to what many critics of the Erdogan administration see as the latest moves in an operation launched by the regime to dismantle any potential for the emergence of real opposition to the entrenched powers-that-be that rule the country.

Eurobond investors have so far shown no sign of giving a real damn over the severe political crisis that has developed in Turkey and the risks that it may pose to the country’s outlook.

On September 3, Turkey's sovereign wealth fund (TWF/TVF) sold a $500mn 5-year paper (XS3173762439) at a 6.875% coupon and a $500mn 10-year paper (XS3173762512) at a 7.75% coupon.

Treasury to redeem $2bn paper in October

To date in 2025, the Treasury has sold five papers worth $11bn. (See the full list of auctions here.)

The authority has also redeemed four papers worth $8bn. It will redeem two more, a $2bn paper (US900123CZ18) in October and a $2.5bn sukuk paper (XS2523929474) in November.

Currently, the Treasury has 43 outstanding papers with a combined nominal value of $99bn. (See the full list of the papers here).