Treasury borrowed 43.7 billion liras in 2 tenders

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Lerato Khumalo

The Ministry of Treasury and Finance borrowed 43 billion 727.6 million liras in 2 government bond auctions held today.

In the first tender, a fixed coupon government bond with a maturity of 2 years (574 days) and a coupon payment of 18.5 percent every 6 months was reissued. The simple interest in the tender was 38.54 percent and the compound interest was 42.25 percent.

In the tender where the nominal bid reached 23 billion 987.1 million liras, nominal sales were 14 billion 318.1 million liras and net sales were 16 billion 284.4 million liras.

In the tender where all of the 3 billion 250 million lira bids from the public were met, 23 billion 978.5 million lira bids were received from market makers and 13 billion lira worth of sales were made to this segment.

In the second tender, a 5-year (1743-day) maturity, 1.24 percent real coupon payment every 6 months CPI-indexed government bond was reissued. Real simple interest in the tender was 3.85 percent, real compound interest was 3.88 percent.

In the tender where the nominal bid reached 11 billion 568.1 million liras, nominal sales were 4 billion 580 million liras and net sales were 4 billion 693.2 million liras.

In the tender where the 1 billion 500 million lira bid from the public was fully met, 8 billion 928.9 million lira bids were received from market makers and 5 billion lira worth of sales were made to this segment.

Thus, the Treasury borrowed a total of 43 billion 727.6 million liras in 2 tenders.