Treasury borrows 31.9 billion liras

The Ministry of Treasury and Finance borrowed a total of 31 billion 919.1 million liras through government bond auctions held today.

In the first auction, a 2-year (602-day) fixed-coupon government bond with 18 percent coupon payments every 6 months was re-offered to the market. The simple interest rate in the auction was recorded at 39.88 percent, and the compound interest rate at 43.85 percent.

In the auction, where the total nominal bid reached 40 billion 422.5 million liras, the nominal sales amount was 12 billion 608.5 million liras, and the net sales amounted to 13 billion 581 million liras.

While the entire 4 billion lira bid from public institutions was met, 7 billion liras of the 14 billion 213.4 million lira bid received from market makers was converted into sales.

SECOND AUCTION

In the second auction, a 6-year (2310-day) floating-rate government bond with coupon payments every 6 months was re-issued. The periodic interest rate in this auction was determined as 23.33 percent.

In the auction, where the nominal bid reached 16 billion 55 million liras, the nominal sales were recorded at 7 billion 55 million liras, and the net sales at 6 billion 338.1 million liras.

In the auction where no bids were received from public institutions, a bid of 1 billion 752.5 million liras was received from market makers, and 1 billion liras worth of bonds were sold to this group.

Thus, the Treasury borrowed a total of 31 billion 919.1 million liras in the two auctions.

News Source: 12punto