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Turkish bond market rallies

It’s been a good month for Turkish financial markets. The lira and equities have strengthened. And the surprisingly sharp fall in inflation last month allowed the central bank to ease monetary policy further, helping to bring local currency bond yields down by close to 100bp. Turkish foreign currency bond yields have dropped too. Financial markets in the rest of the region have also fared well over the past month, with the ruble remaining the star performer.


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