ISTANBUL: Turkish bond yields inched up on Wednesday as the lira hit a 5-month low against a globally stronger dollar, a pointer that the central bank may keep its rates on hold at its March policy meeting to avoid further easing in the lira.
By 1536 GMT, the lira was at 1.8125 to the dollar , after earlier hitting 1.8156, from 1.8025 late on Tuesday. Against its euro-dollar basket it eased to 2.0795, from 2.0770.
The yield on the two-year benchmark bond closed at 5.83 percent, from Tuesday's close at 5.81 percent due to the lira's weakening which could mean the central bank keeping rates flat at its meeting on March 26, analysts said.
The central bank has been easing its policy since mid-2012, an encouraging move for banks to buy more bonds due to lower funding costs.
Istanbul's main share index closed down 0.87 percent at 82,619.05 points, in line with a fall of 0.73 percent in the global emerging markets index.
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