Turkey completes August domestic debt auctions, raises TRY8.4bn at lower costs

Turkey completes August domestic debt auctions, raises TRY8.4bn at lower costs
By Akin Nazli in Belgrade August 21, 2019

The Turkish Treasury held four domestic debt auctions on August 19-20 as it completed its scheduled auctions for the month having raised a total of TRY8.4bn ($1.7bn) versus its planned borrowing target of TRY6.5bn.

The domestic debt rollover ratio was registered at 95% for August, higher than the 73% target, Is Invest said on August 21 in its daily bulletin.

The costs of zero-coupon bills and 5-year CPI-indexed bonds fell compared to the rates obtained in the July auctions, while the 2-year lease certificate cost also compared lower than the rate seen in the last auction held for identical paper, back in June.

However, the cost of 6-year floating coupon bonds rose to 22.65% at the auction held on August 20 from 20.3% at the previous auction, held on August 19.

From May 17 to August 2, foreign investors’ net domestic government bond acquisitions amounted to $464mn, but total outflows still stood at $2.24bn for the year to date, according to the latest data from the Turkish central bank.

According to latest data out of the finance ministry, non-residents’ share in the government’s domestic debt stock rose to 11%, or TRY83.1bn, in July from 10.8%, or TRY79.4bn, as of June. Foreigners' share has gradually declined, moving down from 19% in April 2018 to 10% in May this year.

Turkey’s official consumer price index (CPI) inflation rose slightly to 16.65% in July from 15.72% in June.

Domestic Government Debt Auctions and Borrowing Programme
(TRY bn) Total Public Yield
Auction Maturity Paper Bids Sold B S (%)
19-Mar 12/11/2019 266-day Zero Coupon (re-open) 3.9 2.8 0.6 0.6 19.97
19-Mar 01/10/2024 5-year CPI-indexed semi-annual (re-open) 3.2 2.6 0.5 0.5 3.89
26-Mar 08/12/2020 2-year fixed semi-annual (benchmark) (re-open) 3.8 3.3 1.8 1.8 19.39
26-Mar 08/06/2025 6-year floating semi-annual (re-open, 6.) 1.7 1.5 0.5 0.5 19.78
22-Apr 04/21/2021 2-year fixed semi-annual (benchmark) (new) 4.6 3.2 1.0 1.0 22.18
13-May 05/13/2020 364-day Zero Coupon (new) 10.1 7.2 1.3 1.3 26.12
13-May 01/10/2024 5-year CPI-indexed semi-annual (re-open) 4.6 3.5 0.7 0.7 4.25
14-May 04/21/2021 2-year fixed semi-annual (benchmark) (re-open, 2.) 5.7 4.5 1.3 1.3 25.31
14-May 08/06/2025 6-year floating semi-annual (re-open, 6.) 3.9 3.1 0.5 0.5 21.38
10-Jun 05/13/2020 336-day Zero Coupon (new) 6.9 5.3 1.1 1.1 24.45
10-Jun 06/05/2024 5-year CPI-indexed Semi-annual Coupon (new) 2.8 2.2 0.4 0.4 4.15
11-Jun 04/21/2021 2-year Fixed Semi-annual (benchmark) (re-open) 4.4 3.5 1.1 1.1 22.83
11-Jun 08/06/2025 6-year floating semi-annual (re-open) 2.6 2.1 0.4 0.4 20.89
18-Jun 06/16/2021 2-year lease certificate (direct sale) (semi-annual)   1.6     10.55
18-Jun 12/11/2019 6-month lease c. (to pension funds, unscheduled) 3.9 2.1 - - 23.49
June Borrowing Total Realization 20.5 16.7 3.0 3.0 -
8-Jul 09/16/2020 434-day Zero Coupon (new issue) 12.7 9.7 0.8 0.8 20.6
8-Jul 06/05/2024 5-year CPI-indexed semi-annual (re-open) 3.3 2.6 0.4 0.4 4.17
9-Jul 10/09/2019 3-month bill (new issue) 3.7 2.1 0.1 0.1 22.25
9-Jul 04/21/2021 2-year Fixed Semi-annual (benchmark) (re-open) 7.7 6.1 1.8 1.8 19.35
9-Jul 08/06/2025 6-year floating semi-annual (re-open) 4.2 2.9 0.8 0.8 20.3
July Borrowing Total Realization 31.7 23.3 3.9 3.9 -
19-Aug 09/16/2020 392-day Zero Coupon (re-open) 5.3 3.4 1.4 1.4 15.3
19-Aug 08/06/2025 6-year floating semi-annual (re-open) 2.9 1.2 0.2 0.2 22.65
20-Aug 08/10/2021 2-year lease certificate (direct sale) (semi-annual)   0.8     7.4
20-Aug 06/05/2024 5-year CPI-indexed semi-annual (re-open) 4.0 2.9 0.2 0.2 4.03
10-Sep 08/18/2021 2-year Fixed Semi-annual (benchmark) (re-open)          
10-Sep 06/05/2024 5-year CPI-indexed semi-annual (re-open)          
17-Sep 10/07/2020 385-day Zero Coupon (new)          
17-Sep 08/06/2025 6-year floating semi-annual (re-open)          
8-Oct 01/08/2020 3-month bill (new issue)          
21-Oct 10/20/2021 2-year Fixed Semi-annual (benchmark) (new issue)          
22-Oct 10/07/2020 350-day Zero Coupon (re-open)          
22-Oct 06/05/2024 5-year CPI-indexed semi-annual (re-open)          

Data

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