Daily - 03/09/2010 18:04
With a stronger currency ahead of next week’s auctions, the local bill and bond market had a slightly volatile day where the benchmark moved in the 8.03-8.18% during the day and closed at 8.11%, 3 bps down compared to Thursday’s close. Today TurkStat announced August consumer prices which rose by 0.4% MoM driven by higher food prices. Markets took the news slightly negatively but the interest in CPI linkers continued, where a rally was observed mainly in the medium and long term notes. The uncertainty regarding the outcome of the referendum seems to be priced in the long-term notes, which lagged behind the rest of the curve and witnessed a sell-off.
The Treasury will hold 2 auctions next week: a new 6-month reference bill on Monday and the re-opening of the 20-mo benchmark note on Tuesday.
