Turkey’s Bonds Rally With Stocks on Interest-Rate Cut Wagers - Bloomberg

Turkey’s Bonds Rally With Stocks on Interest-Rate Cut Wagers - Bloomberg:



"Turkish bonds rose, pushing yields down to a five-month low, and stocks jumped as the central bank offered more funding to lenders two days after Governor Erdem Basci said he may cut borrowing costs.



Yields on 10-year bonds dropped 29 basis points, or 0.29 percentage point, to 9.06 percent, the lowest since Nov. 20. The Borsa Istanbul 100 Index (XU100) added 1.7 percent, the second-best advance among 93 gauges monitored by Bloomberg after Brazil’s Ibovespa Index. The lira advanced 0.4 percent to 2.0984 against the dollar by 5:41 p.m. in Istanbul, recording seventh consecutive days of gains. 




The central bank lent 20 billion liras ($9.5 billion) at an auction of one-week repurchase agreements today, the highest amount since April 9. Basci said this week the central bank may trim rates gradually, after Prime Minister Recep Tayyip Erdogan called for an emergency rate cut earlier this year."



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