ISTANBUL: Turkey's benchmark bond yield fell to its lowest level since January 2011 on Friday as the central bank funding costs dropped further and a weak U.S job report fuelled hopes of more global stimulus measures.
Since June, the central bank has been easing liquidity in response to falling economic growth and inflation, encouraging banks to buy more bonds. The average lira funding rate for banks stood at 6.20 percent on Friday, far below the 11.95 percent it hit in early January.
The yield on Turkey's two-year benchmark bond closed at 7.35 percent, its lowest level since January 2011 and compared with a previous close at 7.53 percent.
Istanbul's main share index closed 0.33 percent up at 67,937 points, underperforming a 1.99 percent rise in the MSCI emerging markets index.
Shares in Turkish cement maker Aslan Cimento fell 9.98 percent to 42.40 lira ($23.3) after owner Oyak announced plans to sell almost 10 percent of the company.
The lira firmed to 1.7976 against the dollar, from 1.8110 late on Friday. Against its euro-dollar basket it eased slightly to 2.0493, from 2.0482.
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