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Lira, USD Bonds Extend Rally While Equities Pare Gains

TURKEY
  • The Borsa Istanbul index has fully pared its post-CBRT gains, though the banking sub-index is showing slightly more resilience having risen as much as 10% on the back of the decision.
  • Meanwhile, USDTRY has extended a new leg lower and last deals around the 26.40 level, down over 3% on the day. The 50-day EMA at ~25.89 may provide support further out.
  • Turkey’s USD bonds have extended their rally. 3Y bond yields are down over 30bps, though yields across the curve remain within this month’s ranges.

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