Halister News

(Bloomberg) -- Recommends investors sell 2023 bonds, sees local 10-yr notes trading at 10% yield in next three months, according to e-mailed report by analysts including Min Dai.

• Expects long-end to underperform as foreign investors reduce duration risk
• Turkey has entered a period of “rising political risk again, at least for the next 6-8 months”
• Likelihood of cutting the O/N rate by 50bps in May has “decreased materially”; says 25bps or no cut more likely
• Sees USDTRY heading to 3.2 per dollar by year-end; another election cycle and risks around monetary policy and security remain “key headwinds for the currency”
• Central bank, finance ministry may turn more accommodative in case of early election or referendum. which means “risks to public finances and the inflation outlook are to the upside”