Treasury's **$3.94 Billion** Bond Issuance: Liquidity and Current‑Account Strategy

The Treasury has raised $3.94 billion through the issuance of dollar‑denominated bonds and lease certificates, clarifying its aim to expand the liquidity pool and ease pressure on the current‑account deficit.

The Strategic Weight of Dollar‑Denominated Issuance

Selling bonds in dollars caters to foreign investors' appetite for portfolio diversification while aligning Turkey's external financing costs with international benchmarks. The move seeks to mitigate exchange‑rate risk inherent in foreign‑currency borrowing and to signal confidence to capital markets.

Market Dynamics and Investor Flow

■Bond yields rose 5 bps to 8.65 %.

■In the first 24 hours, bond subscriptions increased 12 %.

■Lease certificate demand surpassed the 8 % increase recorded in the previous issue.

■Foreign portfolio managers signaled new purchases at a 4 % rate.

Long‑Term Macro Framework

This issuance could inject vital liquidity that supports the Central Bank’s tightening trajectory amid year‑end inflation expectations and interest‑rate policy. It also serves as a pivotal milestone for safeguarding foreign‑exchange reserves and maintaining a sustainable external‑debt profile.

Markets, despite short‑term volatility following the $3.94 billion issuance, point to a continued medium‑term uptrend. Fibonacci extensions and Ichimoku cloud analysis suggest that the BIST 100 index remains within an upward channel. Nevertheless, external shock risk and currency swings warrant close monitoring, especially if the 200‑day moving average is breached.