Bonds surge on rate cut foresight

Bloomberg

Benchmark Turkish Lira bonds strengthened, with yields falling as much as 14 basis points to 11.83 percent in Istanbul, the lowest since May 8, according to an index of securities tracked by ABN Amro. Yields were at 11.87 percent at 5:15 p.m. The lira added 0.9 percent to 1.5260 per dollar. The Central Bank will decide on rates on July 16.

"We are seeing foreign buying as the Istanbul inflation figure strengthened expectations for another rate cut as there is no inflationary pressure" said Turgut Keleş, executive director of local markets trading at WestLB.