Skip to content
Subscriber Only

Turkey Markets Jump as Fed, Slowing Inflation Fuel Rate-Cut Bets

  • Yield on 10-year government bonds falls 43 bps in week
  • Core inflation slows third month to lowest since September
Updated on

Turkey’s bonds surged with stocks and the lira gained as core inflation slowed to a nine-month low and speculation grew U.S. policy makers may put off an interest-rate increase, giving the central bank more room to continue an easing cycle that started in March.

The yield on the 10-year bond fell 25 basis points, extending a decline this week to 43 basis points by 6:00 p.m. in Istanbul. The benchmark stocks gauge advanced the most in more than a week and the lira headed for a one-month high. Core inflation, which strips out volatile prices like food and fuel, slowed to 8.77 percent, the lowest since September and beating analyst expectations. The annual headline rate was little changed in May from a three-year low the previous month.