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Turkish Rates Rally Into the CBRT as Markets Hope for Stability

TURKEY
  • Local & USD rates unch this morning after yesterday's firmer session across both local and hard currency bonds.
  • Local curve outperformed, bull flattening 19-21bp in the 7-10Y section of the curve, while the front-belly moved 10-12bp lower in the lead-up to today's CBRT.
  • USD bonds also saw firmer buying across the curve, but less evenly distributed with 3Y -13.5bp, 5Y 10.4bp & 10Y -12.2bp.
  • Markets stabiliser in the form of a relatively hawkish CBRT hold may see cheap Turkish rates claw back some lost ground from the post-Agbal removal spike higher in a near-term relief rally.
  • However, risks still remain mostly skewed to the downside for TRY assets over the medium to longer-term.
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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