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TRY Assets Cracking Under Sanctions weight

TURKEY
  • local & USD yields mostly unch, but likely to open on the back foot on expanded sanctions risks following yesterday's EU decision and overnight moves from the US.
  • Belly of the local curve has proven to be most vulnerable to increased risk premia.
  • USD/TRY opens higher, bucking greenback weakness on local sanctions risks to start marginally below 7.92 resistance.
  • Bias is to the upside for today ahead of a possible announcement of CAATSA sanctions from the US
  • upside resistance coming in at the 7.97-8.03 zone, followed by 8.20.
  • CDS has been notching up this week, now trading at 376.
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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