Treasury borrows again: Interest rate at 42 percent!

In the first auction, a 2-year (693-day) government bond with a 6.3 percent coupon payment every 6 months was reissued. The simple interest rate in the auction was 38.48 percent, and the compound interest rate was 42.18 percent. In the auction where nominal bids reached 23 billion 561 million liras, nominal sales amounted to 5 billion 838 million liras, and net sales were 3 billion 986.6 million liras.

21 BILLION LIRAS IN 2 AUCTIONS

In the auction where the entire 3 billion lira bid from the public sector was met, 7 billion 413 million liras in bids were received from market makers, and 4 billion liras were sold to this segment. In the second auction, a 10-year (3619-day) fixed-coupon government bond with a 13.1 percent coupon payment every 6 months was reissued. The simple interest rate in the auction was 29.77 percent, and the compound interest rate was 31.98 percent. In the auction where nominal bids were 16 billion 585.4 million liras, nominal sales amounted to 7 billion 876 million liras, and net sales were 7 billion 104.3 million liras. In the auction where no bids were received from the public sector, 4 billion 649.5 million liras in bids were received from market makers, and 3 billion liras were sold to this segment. Thus, the Treasury borrowed a total of 21 billion 90.9 million liras in the two auctions. 

News Source: 12punto