Developments and Expectations in the Bond Market
We expect CBRT to raise interest rates by 250 basis points to 45% at the January MPC meeting. With the impact of the tight monetary policy, the real return in TL, which is based on the expected inflation level, continues to increase.
The fact that domestic interest rates are higher than offshore TL rates may create an attraction for investors who prefer to access TL assets through the swap channel. However, swap channels may need to be stretched somewhat in the coming period. It is noteworthy that the number of investors in TL-denominated debt securities funds has declined in the recent period when bond yields have increased. If the aim is to generate returns, it may be more sensible to enter these funds when interest rates are high. In monetary policy, there may still be some upside potential in short bond yields until interest rate hikes stop.
Turkish Markets Daily
npub1f9…cgnq0
2024-01-11 14:01:13
Author Public Key
npub1f9fsgmlcd72qs342yya4spfsnq35vra5qxtv6wnz6pcdhemp9nvqvcgnq0Published at
2024-01-11 14:01:13Event JSON
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"content": "Developments and Expectations in the Bond Market\n\nWe expect CBRT to raise interest rates by 250 basis points to 45% at the January MPC meeting. With the impact of the tight monetary policy, the real return in TL, which is based on the expected inflation level, continues to increase.\n\nThe fact that domestic interest rates are higher than offshore TL rates may create an attraction for investors who prefer to access TL assets through the swap channel. However, swap channels may need to be stretched somewhat in the coming period. It is noteworthy that the number of investors in TL-denominated debt securities funds has declined in the recent period when bond yields have increased. If the aim is to generate returns, it may be more sensible to enter these funds when interest rates are high. In monetary policy, there may still be some upside potential in short bond yields until interest rate hikes stop.",
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