For the operation as an injector for the FAIR project, the heavy-ion synchrotron (SIS) has to deliver intense and high quality ion bunches with a high repetition rate. One requirement is that the initial momentum spread of the injected coasting beam should not exceed the limit set by the available SIS rf bucket area. Furthermore, the Schottky spectrum should be used to routinely measure the momentum spread and revolution frequency directly after injection in order to adjust the rf settings. During the transverse multiturn injection, the SIS is filled with microbunches from the UNILAC linac at 36 MHz. At low beam intensities, the microbunches debunch within a few turns and form a coasting beam with a Gaussian-like momentum distribution. With increasing intensity we observe persistent current fluctuations and an accompanying broadband, pseudo-Schottky spectrum. Analytical and numerical models indicate that the space charge induced multistream instability of the filaments formed after debunching is responsible for the observed turbulent current spectrum.