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Rates Expected to Come Under Pressure as Deeper Negative Real Yields Loom

TURKEY
  • Local & USD rates trade little changed around the open, having closed mixed to weaker in Friday’s session.
  • USD bonds were most offered, rising +9-19.3bp across the breadth of the curve with 2 & 7Y tenors most offered at +17-19.3bp.
  • The focal point for Turkish rates will undoubtedly be the CBRT & FOMC meetings, with the CBRT expected to cut a further -100bp with risks to a larger 200bp cut.
  • Even deeper negative real yields should keep TRY assets on the backfoot this week while sentiment continues to deteriorate simultaneously.
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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