ISTANBUL: Turkish bond yields inched lower on Wednesday after comments from the central bank governor suggested it would continue to keep interest rates low and try to support growth.
Erdem Basci said at a conference in Istanbul that weak economic growth and a low interest rate environment globally meant the right policy for Turkey was also to keep rates low.
The bank has been easing its policy since mid-2012.
The yield on the two-year benchmark bond stood at 5.79 percent, from Tuesday's close at 5.81 percent.
The lira weakened to 1.8058 to the dollar from 1.8025 late on Tuesday. Against its euro-dollar basket it stood at 2.0763, from 2.0770.
"We expect bond yields to more within a band of 10 basis points in intraday trade," wrote Pinar Uslu, strategist at ING's Affluent Banking unit, adding long-term bond yields would track US treasuries and auctions in Spain and Italy.
Istanbul's main share index was down 0.11 percent at 83,252 points, slightly outperforming a fall of 0.49 percent in the global emerging markets index.
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