HALISTER1: INSIDE TURKEY: Bonds, Lira Rise as Moody’s Sell-Off Eases

INSIDE TURKEY: Bonds, Lira Rise as Moody’s Sell-Off Eases

(Bloomberg) -- Turkey’s lira climbs along w/ emerging market currencies, and bonds gain, as a sell-off in Turkish assets sparked by Moody’s downgrade dissipates.
  • TRY +0.5% to 2.9669 per dollar as of 10:35am in Istanbul
  • Yld on 10-yr bonds falls 11bps to 9.69%
  • Turkey Blowout Bond Sale Shows Some Seeing Silver Lining in Junk
    • High demand at Monday’s Treasury auctions was “sign of the resilient global risk appetite, compounded by the idea that indeed, the ratings will stabilize here,” Roxana Hulea, EM strategist at Societe Generale in London, said by e-mail Monday.
    • “Turkey’s fiscal house remains in order, and, potentially, the downgrade could speed up the pace of structural reform to reclaim investment grade”
    • Recommends investors buy Turkey’s five-year lira bonds
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Source: BFW (Bloomberg First Word)

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Roxana Hulea (Societe Generale SA)

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