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Turkish Rates Continue to Slide as FOMC & CBRT Loom

TURKEY
  • Local rates trade a fraction firmer at the open this morning in 5-7Y yields, while USD bonds remain unchanged in early trading.
  • Yesterday’s session saw bear flattening pressures resume with 2-3Y yields rising +28-47bp while the remainder of the curve rose +17-24bp on the day as weak sentiment and expectations for deeper negative real yields continues to weigh on TRY assets Pre-Fed & CBRT.
  • Turkey’s 5Y CDS continued to tick higher (+6.2bp), rising above the 520 handle.
  • Focus remains on the Fed & US Treasury market for today’s session with officials expected to increase the speed of the taper and potentially deliver a more hawkish dot plot.
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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