Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Turkey Yields Surge as Growth Expectations Draw Cash Into Stocks

March 14 (Bloomberg) -- Turkish yields climbed for a second day this week as investors sold bonds and bought equities on expectation that the economy will continue to grow.

Yields on benchmark two-year debt rose 13 basis points, or 0.13 percentage point, to 9.42 percent at the close in Istanbul. The main ISE National 100 index jumped 2.4 percent to 60,835.74, the biggest gain since Feb. 1.

“Finally market participants came to the realization that growth is the real story here,” Isik Okte, chief strategist at broker Halk Invest in Istanbul, said in e-mailed comments. “When you believe the growth story, you think rates are going to rise, you sell bonds and buy equities.”

The lira fell 1 percent to 1.8085 per dollar at 5:50 p.m., its weakest since Jan. 24. The currency broke its 50-day moving average on March 12, according to Okte, when Turkey announced the current-account deficit in January was bigger than expected at $6 billion.

“Investors are worrying again over the high current account in Turkey,” Thu Lan Nguyen, a Commerzbank AG currency strategist in Frankfurt, said by e-mail. “Against the background of persistently high oil prices, this definitely does not bode well” for the lira, she said.

The central bank is unlikely to tolerate renewed lira depreciation, Nguyen said. The currency fell 18 percent against the dollar last year, the world’s biggest drop.

Prime Minister Recep Tayyip Erdogan is targeting economic growth of at least 4 percent this year in his medium-term economic program published in October.

To contact the reporter on this story: Benjamin Harvey in Istanbul at bharvey11@bloomberg.net

To contact the editor responsible for this story: Aydan Eksin at aeksin@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.