June 11 (Bloomberg) -- Turkish benchmark yields retreated for an eighth day, recording their longest falling streak in almost three years, as the country’s current-account deficit narrowed in April.
The yield on two-year debt declined three basis points, or 0.03 percentage point, to 9.11 percent at the close in Istanbul, marking eight consecutive days of losses, the biggest such stretch since July 2009. The lira weakened for the first time in seven days, down 0.1 percent to 1.8247 per dollar as of 6:20 p.m. in Istanbul, after having gained as much as 0.8 percent to 1.8071 per dollar.
Turkey’s current-account gap retreated for a sixth month to $5 billion in April from $7.7 billion a year earlier, the central bank in Ankara said on its website today. Central bank Governor Erdem Basci maintained a tighter monetary policy to support the lira, which has appreciated 3.6 percent this year, the most among emerging-market currencies after the Columbian and Chilean pesos.
“The current-account deficit is on track to decline to around 8 percent of the gross domestic product,” Inan Demir, chief economist at Istanbul-based Finansbank AS, said in e-mailed comments.
The statistics office in Ankara said May 31 Turkey’s trade deficit narrowed more than expected to $6.6 billion in April, contracting for a sixth month and declining from $9.1 billion a year earlier. The median estimate of eight economists surveyed by Bloomberg was $7.1 billion.
The country’s current-account gap stood at a record $77 billion last year, which is 10 percent of its gross domestic product, the second-highest among all nations after the U.S. The lira depreciated 18 percent last year, prompting the central bank to embark on a tighter policy to arrest the currency’s weakness and stem inflation, which until April remained at more than twice the bank’s target for both 2011 as well as 2012.
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