ISTANBUL: Turkish bond yields inched up on Tuesday ahead of treasury bond auctions later in the day and an expected rise in inflation when data for March is released on Wednesday.
Investors were watching for the strength of demand at the reissue of a 14-month zero-coupon bond and 10-year fixed-coupon bond later on Tuesday.
By 0743 GMT the two-year bond yield was at 6.40 percent compared with 6.38 percent on Monday.
The lira was at 1.8088 to the dollar, slightly weaker than 1.8072 late on Monday. Against its euro-dollar basket, it eased to 2.0663 from Monday's 2.0648.
The Treasury sold 1.148 billion lira ($634.6 million) in a tap of a seven-year floating rate note (FRN) on Monday at an average price of 98.045 lira, data showed.
"Demand at the treasury auctions will be key ... Bids at the FRN auction yesterday were weak," said Erkin Isik, a strategist at TEB BNP Paribas, noting this may have been due to the holiday in major markets on Monday.
"The 10-year bond auction today will be more important for yields in the long end and we think a bid-cover ratio below 1.9 would mean higher yields."
The market is also expecting higher inflation figures on Wednesday.
Retail prices in Turkey's largest city rose 0.93 percent month-on-month in March, the Istanbul Chamber of Commerce said on Monday, pointing to higher nationwide inflation.
Istanbul's main share index fell 0.57 percent to 85,686.96 points, underperforming a 0.12 percent fall in the global emerging markets index.
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