 The yield in the Turkish Treasury's 2041 bond sale was at 6.25 percent on Wednesday. DAILY NEWS photo, Selahattin SÖNMEZ |
Turkish bonds rallied after the government received bids worth five times the $1 billion it offered in a sale of 30-year debt.
The yield on the benchmark two-year lira bond had dropped to 6.88 percent at 2:34 p.m. A close at that level would be a record low.
Turkey’s $1 billion bond, due in 2041, rose in its first day of trading Thursday, driving the yield lower. Turkish two-year bond yields fell below 7 percent for the first time this week after the statistics office said Monday that inflation dropped to below the Central Bank’s 2010 year-end target.
“The major movement in the markets stems from the rate-cut expectations, and because of this expectation is growing in the stock market that bank profits will not be as bad as was feared in the first quarter,” Ekspres Invest chief economist Güldem Atabay said in an interview. “Treasury bond sales contributed to the positive sentiment.”
The yield on the 2041 bond fell to 6.166 percent, according to bid prices on Bloomberg from ING and HSBC Holdings. The bond was priced Wednesday to yield 6.25 percent, the Treasury said. The cost of borrowing was the lowest ever for the maturity, the Treasury said Thursday.
The MSCI World Index rose to a two-year high and Standard & Poor’s 500 Index advanced on speculation economic growth is accelerating. Economists raised forecasts for U.S. non-farm payrolls after a report Wednesday showed that companies added jobs last month by the most since records began in 2001.
“The increase in global risk appetite, which is reflected in Wednesday’s S&P and especially strong Nasdaq action, coupled with the turnaround of the negative mood in crude oil and other commodities is helping,” Bali Ekin, head of equity trading in Credit Europe Bank in Amsterdam, said in e-mailed comments.
The yield on the benchmark two-year lira bond had dropped to 6.88 percent at 2:34 p.m. A close at that level would be a record low.
Turkey’s $1 billion bond, due in 2041, rose in its first day of trading Thursday, driving the yield lower. Turkish two-year bond yields fell below 7 percent for the first time this week after the statistics office said Monday that inflation dropped to below the Central Bank’s 2010 year-end target.
“The major movement in the markets stems from the rate-cut expectations, and because of this expectation is growing in the stock market that bank profits will not be as bad as was feared in the first quarter,” Ekspres Invest chief economist Güldem Atabay said in an interview. “Treasury bond sales contributed to the positive sentiment.”
The yield on the 2041 bond fell to 6.166 percent, according to bid prices on Bloomberg from ING and HSBC Holdings. The bond was priced Wednesday to yield 6.25 percent, the Treasury said. The cost of borrowing was the lowest ever for the maturity, the Treasury said Thursday.
The MSCI World Index rose to a two-year high and Standard & Poor’s 500 Index advanced on speculation economic growth is accelerating. Economists raised forecasts for U.S. non-farm payrolls after a report Wednesday showed that companies added jobs last month by the most since records began in 2001.
“The increase in global risk appetite, which is reflected in Wednesday’s S&P and especially strong Nasdaq action, coupled with the turnaround of the negative mood in crude oil and other commodities is helping,” Bali Ekin, head of equity trading in Credit Europe Bank in Amsterdam, said in e-mailed comments.
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