ISTANBUL: Turkey's first issue on Tuesday of its new benchmark bond maturing on Oct 7, 2015 is expected to pay an average compound yield of 8.26 percent, a Reuters survey showed.
The first issue of a new ten-year fixed-coupon bond maturing in September 2023 is expected to have an average compound yield of 8.96 percent, according to the poll of seven financial institutions.
A tap of its floating-rate note maturing in 2020 is expected to be priced at 94.93 lira.
Including non-competitive bid sales to primary dealers of 1.1 billion lira ($560 million) ahead of the auction, sales to the market of the two-year new benchmark bond were forecast to reach 2.21 billion lira.
Sales to the market of the 10-year bond were expected to be 1.83 billion lira, including non-competitive bid sales to primary dealers of 514.6 million lira.
Sales to the market of the floating-rate note (FRN) were expected to be 1.25 billion lira, including non-competitive sales of 247.6 million lira before the auction.
Forecasts for the new two-year benchmark bond yield ranged between 8.16-8.40 percent and were in a range of 8.85-9.00 percent for the ten-year bond. Price forecasts for the FRN ranged between 94.5-95.3 lira.
Turkey's Treasury said at the end of last month it planned domestic borrowing of 11.5 billion lira in October, of which 10.3 billion lira would be from markets, against redemptions of 14.9 billion lira.
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