Turkish bond yields rebounded from all-time lows, the lira weakened to six-month low and shares were down on Friday as investors shunned riskier emerging market assets following disappointing US jobs data. The US Labour department's survey of non-farm employers showed payrolls increased 103,000 last month, below economists' expectations for 175,000.
The main Istanbul share index closed 0.8 percent lower at 68,770.29, after gaining four days in a row. Turkish stocks gained this week and bond yields hit record lows as the lower-than-expected December inflation data released on Monday signalled that the central bank had more leeway to cut interest rate cuts.
The yield on the benchmark August 8, 2012 bond closed at 6.94 percent, after falling to an all-time low of 6.87 percent on Thursday. Bond yields have been falling since the central bank last month cut its benchmark rate by 50 basis points to 6.5 percent and raised banks' required reserve ratios, seeking to curb credit growth and inflows of "hot money".
The lira weakened as low as 1.57 per dollar and closed at 1.5680/88 against the dollar, from 1.5440 on Thursday. Turkey also sold a 30-year Eurobond on Wednesday, which was five times subscribed. The auction of the 30-year, $1 billion Eurobond, the first issue from an emerging market this year, saw high demand at a competitive yield, analysts said, as traders speculated that ratings agencies could upgrade Turkey soon.
Dogan Group companies eased back after a three-day rally triggered by the emergence of details regarding Dogan Yayin's planned asset sales. Shares in newspaper company Hurriyet closed 1.8 percent down, media company Dogan Yayin dipped 2.3 percent and Dogan Holding was 1.7 percent lower.
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