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Türkiye’s Treasury and Finance Ministry raised ₺97.86 billion ($2.49 billion) in debt from 3 government bond auctions held on Tuesday, reflecting continued borrowing needs despite a strong monthly cash surplus.
According to the ministry's statement, investor demand for the bonds remained strong, driven by relatively high interest rates and growing confidence in the Turkish economy.
The first sale involved a zero-coupon bond, which pays no interest but is sold at a discount and redeemed at face value. The bond matures in 273 days and saw a simple interest rate of 44.5%, with a compound yield of 46.81%. Total investor demand reached ₺21.62 billion, while the Treasury issued ₺11.77 billion in nominal terms and collected ₺8.83 billion in net proceeds.
The second offering was a fixed-rate bond with a four-year maturity and a 15% coupon paid every six months. The simple yield came in at 34.85%, with a compound rate of 37.88%. It attracted ₺65.51 billion in bids. The Treasury sold ₺40.46 billion nominally, resulting in ₺38.94 billion in net sales.
In the third auction, the Treasury reopened a floating-rate note, a bond whose interest payment adjusts periodically based on market rates. This note matures in seven years and yielded a 22.61% interest for the period. Total bids hit ₺17.35 billion, with net sales of ₺8.03 billion.
All three auctions included sales to public institutions and primary dealers, which are financial institutions authorized to buy directly from the Treasury. Across the three offerings, public sector demand was fully met, and primary dealers were allocated ₺32 billion in total.
Türkiye also posted a notable fiscal performance in May. According to the Treasury, the monthly cash balance—the difference between state revenues and expenditures—posted a surplus of ₺247.13 billion.
Cash revenues totaled ₺1.35 trillion, while expenditures amounted to ₺1.10 trillion. The primary surplus, which excludes interest payments and reflects the underlying budget strength, reached ₺348.59 billion.
In addition, foreign exchange movements added ₺2.13 billion to the Treasury’s balance. The government’s net cash position in banks also improved by ₺461.8 billion, indicating a substantial liquidity buffer.
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