MNI CHINA LIQUIDITY INDEX: CONDITIONS TIGHTEN IN JUNE

MNI BRIEF: Aussie Monthly CPI At 4%, Higher Than Expected

MNI: PBOC Net Drains CNY28 Bln Via OMO Weds; Rates Unchanged

MNI DATA TABLE: MNI China Interbank Liquidity Index (Jun) - 1

CHINA PBOC CONDUCTS CNY250 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1248 Weds; -0.56% Y/Y

MNI China Liquidity Index™ – Conditions Tighter In June

MNI DATA TABLE: MNI China Interbank Liquidity Index (Jun) - 3

MNI DATA TABLE: MNI China Interbank Liquidity Index (Jun) - 2

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Rally on Turkish Bonds, Equities Extends

TURKEY
  • The rally on Turkey’s USD bonds has extended. Yields are down 6-14bps across the curve, which has steepened on the day. The move lower in yields marks an extension of the notable move on Friday when Erdogan named three new central bankers as part of the revamp of his economic team and pivot to more orthodox policy. The benchmark Borsa Istanbul Index has also rallied and sits 3.6% higher compared to Friday’s open.
  • Turkey’s 5Y CDS have also continued to decline, and last deal at 378bps – their lowest level since September 2021. Vice President Yilmaz said last week that he expects Turkish CDS spreads to decline ahead of the announcement of the government’s mid-term economic plan in September.
  • Nevertheless, high inflation, financing requirements and a large current account deficit may pose risks to the rally in bonds, some investors have warned. Moreover, the CBRT governor warned last week that inflation is expected to jump to 58% by year-end while reiterating that rate hikes will only be “gradual and stable”. Though USDTRY has remained stable since the July 20 rate decision, disappointingly small rate hikes going forward could pose risks to TRY and other Turkish assets.
BulletEM BulletEmerging Market NewsHomepageAT&T Market NewsBank of America Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.