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Turkish Bonds Recover Slightly After Erdogan Proposes Deposit Tweaks

TURKEY
  • Local & USD rates remains unch this morning, having regained some ground in yesterday’s session following Erdogan’s FX-linked deposit measures announced late on Monday evening.
  • 2-3Y yields retraced -63-90bp of Monday’s +140bp move higher but failed to pare the entire move as markets continue to digest the possible fiscal and inflationary ramifications of the policy.
  • USD bonds saw -21.4-39.2bp in gains across the curve - similarly, maintaining a bull steepening bias with 2-3Y yields outperforming as markets pared back rate hike bets.
  • The 5Y CDS fell -20bp, but held above the 600 mark.
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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