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Powell Re-Elections Sparks Risk Aversion in EM, Local Rates Slide

TURKEY
  • Local rates trade little changed around the open, but are likely to follow the lira's lead in weakening today following comments from Erdogan on interest rates.
  • Selling pressure remained robust in TurkGBs yesterday with 2Y yields rising +43bp on the day as Powell was re-elected as Fed Chair – sparking expectations for a potentially faster taper timeline that hurt EM rates across the board.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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