The treasury expects to place a $500 million, 10-year Eurodollar bond issue, after a good response to a roadshow which ended on

12 September. The bond, lead arranged by Morgan Stanley and Salomon Brothers, will probably be launched by 18 September, treasury sources say.

The treasury will include a 144A option in the issue to be able to tap the US market. Istanbul bankers expected a pricing of 340-350 basis points above US treasury notes.

The treasury plans to conclude its 1997 balance of payments borrowing, totalling about $2,300 million, with another Deutschemark issue. Economics State Minister Gunes Taner recently returned from Germany claiming strong support there for a DM 1,000 million ($554 million) Eurobond.

The treasury's last borrowing with lead arrangers Commerzbank and West LB was a five-year DM 1,000 million Eurobond issue in early June with a coupon of 7.25 per cent (MEED 13:6:97).