ISTANBUL: Turkish two-year bond yields were steady and the lira firmed slightly ahead of a central bank meeting on Tuesday at which it is expected to cut its main policy rate.
By 1456 GMT, the yield on the two-year benchmark bond stood at 5.75 percent, little changed from a close of 5.73 percent on Friday and trading in a narrow band.
Expectations of a cut in rates at Tuesday's meeting, allied to hopes of further improvement in Turkey's credit ratings, have pushed yields near to a record low of 5.63 percent reached in February.
But dealers said the market had now largely priced in a quarter-point cut and was preparing itself for disappointment on speculation the bank would do more than that.
The lira firmed to 1.7885 to the dollar from 1.7905 late on Friday. Against its euro-dollar basket it was firmer at 2.0640.
Istanbul's main share index closed up 0.62 percent at 85,107.29 points, outperforming a drop of 1.2 percent in the global emerging markets index.
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