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2025-09-16 20:02:25
[Turkish Bond Market Update: High Yields and Huge Demand] 1. On Tuesday, the Turkish Ministry of Finance sold approximately 1.4 trillion liras of bonds in two bond issuances. Non-competitive bids from primary dealers totaled 196 million liras, while 13 billion liras of inflation-protected bonds were sold to state institutions. This indicates continued market demand for Turkish government bonds, particularly in the upcoming auction of inflation-protected bonds due on September 11, 2030, which saw non-competitive bids totaling 3.596 billion liras. 2. In its fixed-rate bond issuance due on September 5, 2035, the Ministry of Finance received 15.669 billion liras of non-competitive bids from primary dealers, but no sales were made to state institutions. This issuance faced significant market demand, providing support for subsequent yields. ⑶ It is worth noting that in the auction of inflation-protected bonds due on September 11, 2030, the Turkish Ministry of Finance ultimately issued bonds with a net value of 1.3505 billion liras, with an actual yield of 6.21%, reflecting investors' expectations of future inflation and confidence in the country's sovereign debt. ⑷ As for fixed-rate bonds due on September 5, 2035, the Turkish Ministry of Finance issued bonds with a net value of 6.3971 billion liras, with a coupon rate of 32.09%. This extremely high yield highlights Turkey's current financing costs and reflects the market's concerns about its long-term debt risks. Under such high financing costs, traders' psychological game and judgment of future economic trends will be key.
