Bloomberg News

Turkish Bonds Rise After Demand Exceeds Supply at Debt Sale

February 18, 2013

Turkish benchmark two-year bonds rose after the Treasury sold less debt than it received bids for at an auction today.

Yields dropped two basis points, or 0.02 percentage point, to 5.76 percent at the 5 p.m. close in Istanbul. The lira traded less than 0.1 percent lower at 1.7680 per dollar, according to data compiled by Bloomberg

Turkey’s Treasury sold 848.2 million liras ($480 million) of February 2018 bonds at 6.30 percent average yield in an auction today, compared with 6.62 percent at a previous sale of similar maturity debt on Jan. 7. It also sold 864.8 million liras of October 2022 inflation-linked bonds at 1.01 percent average yield in a separate auction, compared with 1.36 percent on Jan. 7. Bank bids totaled 4.97 billion liras for the 2018 debt and 3.23 billion liras for 2022 bonds.

“When we consider strong demand today, we think that the demand may be strong in tomorrow’s auctions,” Ali Cakiroglu, a strategist at HSBC Asset Management in Istanbul, said in an e- mailed note.

The Treasury will sell two-year benchmark bonds and 2022 fixed-coupon bonds tomorrow as it seeks to borrow a total of 13 billion liras in five debt auctions this month, according to the Ankara-based Treasury’s debt sale plan published on Jan. 31.

Turkey offers the highest yields after Brazil, India and Russia for two-year lira debt among 21 major emerging economies tracked by Bloomberg.

To contact the reporter on this story: Selcuk Gokoluk in Istanbul at sgokoluk@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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