ISTANBUL: 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 Feb 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 bond market didn't have much volume today. There was almost no trade in the afternoon because of the holiday in London,’ said one trader.
‘Markets are focused on the inflation data tomorrow. Yields will fall if inflation is less than one percent,’ he added.
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.
Karsan Otomotiv, a Turkish carmaker, dropped 8.4 percent to 2.06 lira after the New York Times reported that Karsan's bid to provide a new generation of New York taxis had been rejected by the Taxi and Limousine Commission.
The company said in a statement that Karsan had not received an official statement from the Commission.
Another Turkish automaker, Tofas, saw its shares fall 0.9 percent to 8.66 lira after the company's first quarter net profit missed forecast.
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