ISTANBUL, Feb 18 (Reuters) - Turkey is expected to sell 1.5

billion lira ($845 million) of a new five-year fixed-coupon bond

on Monday at an average compound yield of 6.4 percent, a Reuters

survey of nine banks showed.

Sales to the market in the tap of a 10-year CPI-linked bond

are seen at 1.4 billion lira with an average real return of 1.11

percent.

The 10-year CPI-linked bond was last issued on Jan. 7 and

produced an average real return of 1.36 percent.

The results of Monday's sales are due early in the

afternoon.

The following forecasts show expected sales to the market,

including non-competitive bids, the average compound yield for

the fixed-coupon bond and the real return rate for the

CPI-linked bond.

BOND MATURITY YIELD SALES

Feb. 14, 2018 6.4 pct 1.5 bln lira

Oct. 26, 2022 1.11 pct 1.4 bln lira

The Treasury placed a combined 4.07 billion lira ($2.3

billion) of the two bonds through non-competitive tenders before

the auctions, of which 857.5 million lira went to primary

dealers and 3.21 billion lira to public institutions.

By 0931 GMT, the real return on the ten-year CPI-linked bond

stood at 1.01 percent. Trading volume in the bond market was

thin due to a U.S. holiday.

The treasury plans to borrow 13 billion lira from domestic

markets in February against redemptions of 15.2 billion.

($1 = 1.7665 Turkish liras)

(Reporting by Behiye Taner; Writing by Seltem Iyigun; Editing

by John Stonestreet)

Keywords: TURKEY DEBT/AUCTIONS

(seltem.iyigun@thomsonreuters.com)(+90 212 350 70 62)(Reuters Messaging: seltem.iyigun.thomsonreuters.com@reuters.net)

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