Turkey: High demand for government bonds at auction

ANKARA - Turkey's Treasury held three bond auctions worth 5.7 billion Turkish liras ($2.3bln) on Tuesday.

The auction is intended to help the Treasury pay back 45.5 billion lira ($18.3 billion) of domestic debt for the period from February to April 2015.  

The first auction was for a semi-annual two-year issue with a 4.10 percent fixed coupon rate note. This was sold at 8.17 percent simple interest and at 8.34 compound interest. The offer attracted 7.13 billion lira of incoming bids, meaning the auction was more than two times oversubscribed, and the revenue was 1.77 billion Turkish liras ($712 million). 

The second auction was for a semi-annual 6-year bond with floating coupon rate, which attracted 3.5 billion Turkish liras ($1.4 billion) of incoming bids, and revenue stood at 1.25 billion Turkish liras ($503 million). 

The third auction was for a semi-annual 9-year bond with 4.50 percent fixed coupon rate which was sold at 7.76 percent simple interest and at 7.91 percent compound interest. The offer attracted 6.4 billion lira of incoming bids and revenue remained at 2.68 billion lira ($1.07 billion)

The Treasury will hold eight bond auctions this year through the end of April.

The Turkish Treasury held two bond auctions Monday worth 5.8 billion Turkish liras ($2.3 billion).

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