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Turkish Bonds Gain as Ukraine Talks See Positions Converge

TURKEY
  • Local & USD rates remain Unch this morning, having marked solid gains on the back of cautious signs of de-escalation in the Ukraine crisis as negotiating positions converge on a number of key issues.
  • TurkGB yields fell -54-84bp in 2 & 5Y tenors, while USD bond yields also declined -25-37bp with a bull flattening bias holding.
  • Turkey stands among the top benefactors to a de-escalation, given its energy and food import reliance on both Ukraine & Russia and should see inflationary risks moderate somewhat.
  • However, the currently unstable policy mix of low rates will keep inflation pressures high and sticky throughout the course of the year.
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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