ANKARA, (Reuters) - The Turkish Treasury on Tuesday, May 29, sold a net 5.6 trillion lira ($5 million) in 13-month bills at a maximum yield of 79.98 percent.
Financial markets were watching the results of the auction closely for signs Turkey can bring down the rates and increase demand for longer term debt as it seeks to lower its borrowing costs. The tiny amount auctioned indicates there was barely any demand at levels that the Treasury was prepared to borrow.
The treasury had set no price or minimum quantity for auction after it sold only 70 percent of the amount targeted at last Tuesday's sale when it off-loaded a net 2,162 trillion lira in six- and 10-month papers.
The treasury now awards all accepted bids at the highest interest rates offered since a February financial crisis which forced Turkey to abandon its crawling-peg regime and float the lira.
Bankers polled by Reuters earlier expected yields to come in between 81 and 85 percent compared with maximum yields of 75 percent last week.
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