Turkish Bonds Extend Drop as Traders Await Central Bank Decision
- Yield on 10-year debt climbs above 15 percent; lira weakens
- JPMorgan says central bank may hike rates by 50bps on Thursday
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Turkish government bonds fell for the fifth day and the lira weakened against the dollar as investors waited to see how the central bank will set policy this week in response to a deteriorating inflation outlook.
The pace of consumer-price increases climbed toward a 14-year high in May as an almost 18 percent slide in local currency this year feeds through to import prices. That’s fueling speculation that the monetary authority will have to raise interest rates for the second time in as many months when policy makers meet on Thursday.