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TRY Assets Shine as EM Sentiment Sees a Tentative Recovery

TURKEY
  • TRY outperforming its EM peers today with some solid buying activity across the breadth the FI space
  • Local curve bull flattening at the back end, but interestingly selling off sharply in 3Y locals +26bp
  • USD curve catching a bid across the curve 8.8-12.2bp lower
  • USD/TRY diverging slightly from the broad EM uptrend, taking out Friday's low and the 7.30 handle
  • Limited local catalysts in the newsflow, but most likely a re-allocation at elevated levels close to 7.50 following last week's clean out.
  • As highlighted in this morning's summary, sell side is tentatively happy to fade rallies to 7.50 with a close eye on US real yields
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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