The Turkish lira was slightly lower and bond yields were up a little in low volumes on Monday, with investors focused on Tuesday's April inflation data while global sentiment benefited from news of the killing of Osama bin Laden. The lira was modestly down at 1.5214 against the dollar at the spot close, compared to a spot close of 1.5175 on Friday.
The yield on the benchmark February 20, 2013 bond was slightly higher at 8.37 percent at the close, from 8.34 percent at the close on Friday. Turkey's consumer price index is seen up 0.9 percent month-on-month in April, according to a Reuters poll. Data on Sunday showed retail prices in Istanbul, Turkey's largest city, rose 2.51 percent month-on-month in April, while wholesale prices increased 0.75 percent. In March retail prices rose 0.83 percent and wholesale prices were up by 0.89 percent.
The benchmark yield touched a three-month low of 8.16 percent last Thursday before the central bank revised up its inflation forecast. Turkish bond yields surged after the central bank raised its 2011 inflation forecast by one percentage point to a mid-point of 6.9 percent, partly on account of higher fuel prices. Turkey imports 95 percent of its oil and gas needs. The main share index rose 0.4 percent to 69,522.42, in line with the MSCI index of emerging market stocks.
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