Turkish lira, bonds flat ahead central bank meeting

ISTANBUL: The Turkish lira and bond yields held steady on Monday after two successful debt auctions, with investors awaiting a central bank rate decision on Tuesday.

By 1539 GMT, the lira was at 1.7667 to the dollar , a touch stronger than 1.7674 late on Friday. Against its euro-dollar basket it firmed slightly to 2.0625, from 2.0646.

The yield on the two-year benchmark bond closed at 5.76 percent in thin trading, from Friday's close at 5.78 percent.

Istanbul's main share index closed down 0.22 percent at 77,907.51 points, in line with a fall of 0.32 percent in the global emerging markets index.

The central bank is expected to raise reserve requirements on Tuesday in a bid to keep loan growth in check, but economists are divided over whether it will also cut interest rates.