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TurkGBs Gain Ground Ahead of the CBRT, Despite Negative Real Yields

TURKEY
  • Local & USD rates remain unch this morning, having closed mostly firmer in yesterday’s session. TurkGB yields fell -30-63bp across the curve with gains concentrated in the belly (5-7Y).
  • Yields have been falling into the CBRT meeting as markets anticipate a near-term end to the cut cycle following comments alluding to the complete use of the limited room left to ease policy in the December statement.
  • Nevertheless, Turkey’s deeply negative real yields leave TurkGBs vulnerable to a tightening external backdrop in 2022 with almost 4 Fed rate hikes priced in.
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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