ISTANBUL: Turkish two year bond yields were steady and the lira eased slightly ahead of a central bank policy meeting on Tuesday that is expected to cut its main policy rate.
By 0840 GMT the yield on the two-year benchmark bond stood at 5.74 percent, virtually unchanged from a close of 5.73 percent on Friday. Declines in the past two weeks have pushed yields near to a record low of 5.63 percent reached on Feb. 21.
The lira eased slightly to 1.7915 to the dollar from 1.7905 late on Friday. Against its euro-dollar basket it was firmer at 2.0667.
Dealers said the market had already priced in a quarter-point cut in the bank's policy rate.
"Bond yields may rise or remain steady if we see a 25 basis point cut from the central bank tomorrow, but if we see a 50 bps cut in the policy rate, the benchmark bond yield may hit a new record low of 5.50 percent," said one banker.
Istanbul's main share index fell 0.27 percent at 84,356.33 points, outperforming a drop of 0.66 percent in the global emerging markets index.
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