UPDATE 1-Turkish Treasury cuts bond auctions as financing need declines
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ISTANBUL, Nov 9 (Reuters) - Turkey's Treasury will not holdthree of six bond auctionsoriginally scheduled for next week,it said on Friday, after its financing needs decreased due tonew savings measures and strong demand for eurobonds.
The move is likely to ease some worries over Ankara'sexternal funding after a currency sell-off earlier this yearsent the lira to a record low against the dollar andsparked concerns about the broader economy.
The lira has recovered some ground since the peak of theselling in August, although it is still down some 30 percentthis year. The sell-off has highlighted the fragility of theeconomy, which has long been reliant on foreign funding.
The Treasury said it had so far raised $7.7 billion frominternational capital markets in 2018, exceeding its plannedexternal borrowing amount of $6.5 billion.
"Along with this, due to savings measures taken for the yearof 2018 in the 2019-2021 New Economic Programme, the Treasuryfinancing needs have decreased," it said.
The Treasury decided not to hold an auction on Nov. 12 for a10-year CPI-indexed bond and also cancelled two auctions plannedfor Nov. 13 for a 7-year floating coupon bond and a 10-yearfixed-coupon bond.
It will still hold auctions for a 13-month zero-coupon bond,a 5-year fixed-coupon bond on Nov. 12 and a 2-year fixed-couponbond on Nov. 13.
Turkey announced its economic programme for the next threeyears in October, substantially cutting its growth forecasts andpromising savings measures to rebalance the economy. It has seen strong demand in its return to the internationalbond market recently, with two of its latest eurobond issuesattracting three times the size of the issues.Turkey's banks are seen as particularly vulnerable to thesell-off in the lira because of both their own externalfinancing and the likelihood that the crisis will cause morefirms to default on debts at home.
($1 = 0.8823 euros)
(Reporting by Ezgi Erkoyun; Writing by Daren Butler and AliKucukgocmen; Editing by David Dolan and Gareth Jones)
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