Macro and Politics

* The Treasury and Finance Ministry raised a total of TL151bn from domestic markets, including TL71bn in non-competitive sales, through yesterday’s auctions of a 4y TLREF-indexed and a 4y FRN. Demand remained moderate, with bid-to-cover ratios of 1.72x and 1.93x in the TLREF-indexed and FRN auctions, respectively. The term rate was set at 19.25% in the TLREF-linked auction, while the FRN auction cleared at a term rate of 20.76%. With yesterday’s auctions, the Treasury’s cumulative domestic borrowing in June reached TL228bn. Following yesterday’s double sales, the Treasury will hold the direct sales of a 2y gold-denominated bond and a 2y gold-denominated lease certificate on June 11. This will be followed by auctions of an 8m zero-coupon bond and a 2y fixed-coupon bond on June 15, and auctions of a 1y TLREFK-indexed bond and a 5y fixed-coupon bond on June 16, thereby completing its June domestic borrowing program. According to the Treasury and Finance Ministry’s three-month domestic borrowing strategy for the June–August 2026 period, domestic redemptions amounting to TL555bn in June are planned to be met with total domestic borrowing of TL543.8bn, implying a rollover ratio of 98%.