Turkey’s 5-year credit default swaps (CDS) declined to 214bp, the lowest level since July 2015, following the central bank’s unexpected decision on April 26 to push the late liquidity window rate up by 50bp to 12.25%, Reuters reported on April 27, citing data from IHS Markit.
The rate hike was seen as giving the regulator additional flexibility in the event of future depreciation pressure on the lira from continued inflation risks. Annual inflation hit an 8.5-year high of 11.29% in March.
The average yield spread on Turkey’s USD-denominated Eurobonds over US Treasuries has declined to 291bp, the lowest level since mid-2016, while 10-year domestic bond rates have declined to five-month lows, according to Reuters.
On April 27, the Turkish lira gained 0.30% d/d against the USD to 3.5664, while the benchmark BIST-100 index was down 0.25% to 94,282.
Turkish equities experienced an outflow of $111mn in the week ending April 21, central bank data also showed on April 27. Total inflows since the start of the year top $1.08bn.
The regulator also reported an inflow last week of $41mn into government debt securities. There has been an overall inflow of $1.10bn since the beginning of 2017.
| NON-RESIDENTS' HOLDINGS OF EQUITY AND GOVERNMENT DOMESTIC DEBT SECURITIES ($ mn) | |||||||
| (Market Value) | 21/04/17 | 14/04/17 | 07/04/17 | 31/03/17 | 24/03/17 | 17/03/17 | 10/03/17 |
| STOCK | |||||||
| EQUITY | 42,319.10 | 41,190.80 | 39,663.90 | 40,588.40 | 41,308.00 | 40,877.40 | 39,676.10 |
| GDDS (*) | 27,081.50 | 26,812.90 | 26,209.80 | 26,253.50 | 26,442.50 | 25,503.80 | 24,917.90 |
| Repo | 2,259.50 | 2,245.70 | 2,202.70 | 2,283.20 | 2,304.00 | 2,173.10 | 2,130.80 |
| Private Sector | 852.9 | 844.9 | 833.7 | 831.5 | 826 | 805 | 881.8 |
| NET TRANSACTIONS (Adjusted for Foreign Exchange and Market Price Effects) | |||||||
| EQUITY | -111.3 | 173.3 | 116 | -101.9 | -58.5 | 44 | -94.3 |
| GDDS (*) | 40.6 | 80.2 | 487.3 | 149.8 | 398.8 | -58.1 | 354 |
| Repo | -4.1 | 5 | -35.5 | 0.9 | 86.2 | -0.3 | 119.2 |
| Private Sector | 8 | 11.2 | 2.1 | 5.5 | 21 | -76.7 | 13.2 |
| source: tcmb | |||||||
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Iran's Araghchi arrives in Turkey for talks on US military build-up as Ankara looks to act as mediator
Iranian Foreign Minister Abbas Araghchi arrived in Istanbul on January 30 for meetings with Turkish officials to discuss regional issues amid what he described as serious challenges posed by US ... more
TPAO and ExxonMobil sign deal for offshore exploration
The Turkish Petroleum Corp. (TPAO) has formalised a strategic partnership with Esso Exploration International, a subsidiary of ExxonMobil, marking a significant escalation in Türkiye’s ambitions ... more
Turkish LPG carrier set on fire during Russian drone attack
A Turkish LPG carrier docked at the port of Izmail, Ukraine, was hit by a Russian drone during an attack, sparking a fire on the vessel, which has now been extinguished. According to the Maritime ... more