Turkish bond yields rise as Ukraine tensions rattle investors

18 Jul, 2014

ISTANBUL: Turkish bonds yields rose on Friday, part of a broad move into safe-haven assets after a Malaysian Airlines jet was shot down near the Ukraine-Russia border.

All 298 people on board the aircraft travelling from Amsterdam to Kuala Lumpur were killed in an incident likely to further heighten tensions between Russia and the West.

The benchmark 10-year government bond yield rose to 8.91 percent from 8.82 percent at Thursday's close.

The Turkish lira held largely steady at 2.1233 against the dollar, after the central bank trimmed interest rates on Thursday but resisted calls from the government for swingeing cuts.

After falling earlier in the session, the main Istanbul share index closed up 0.65 percent at 82,314 points, outpacing the broader emerging markets index, which was up 0.07 percent.

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