TREASURY BORROWS USD 800M THROUGH AUCTIONS

The Ministry of Treasury and Finance borrowed USD 800m (TRY 6bn) from domestic markets on January 19, according to an official statement. The Ministry sold TRY 1.5bn (USD 201m) zero coupon bonds – new issuance – in the first auction. The Treasury bill will be settled Wednesday and mature on April 13, 2022. The total tender amounted to TRY 2.9bn (USD 389m) with a 53% rate. The term rate of the 448-day government bonds was at 19.39%, while the annual simple and compound interest rates were 15.76% and 15.49%, respectively. In the second auction, the Ministry of Treasury and Finance issued a 5-year Turkish Lira Overnight Reference Rate (TLREF)-indexed bonds totaling TRY 4.5bn (USD 603m). These will be settled on Wednesday with a maturity period on January 14, 2026. According to the Ministry, the total tender in the second auction amounted to TRY 7bn (USD 939m), with a 64.6% rate. The term rate of 1,820-day government bonds was at 4.28%, while the annual simple and compound interest rates were 17.11% and 18.24%, respectively.