Morning Commentary: Turkey down on central bank inaction; Bulgarian Energy prices tap

By Rebecca Melvin

New York, July 24 – Following a week or more of stability and relative strength, Turkey’s bonds sold off on Tuesday after the country’s central bank kept its interest rates unchanged instead of raising them as many expected to fend off inflation.

The bank’s decision to leave its target interest rate unchanged at 17.75% resurrected fears that president Recep Tayyip Erdogan is imposing undue influence on monetary policy.

The Turkey 11 7/8% notes due 2030 were down 0.34 point, or 0.25% to 137.12. They had dipped to 132ish on July 13 from nearly 139 on July 9.

Turkey’s intermediate to long end also dropped and the Turkish lira fell against the U.S. dollar by about 4%.

Meanwhile, Bulgarian Energy Holding EAD joined a very slim list of July issuers for the Central & Eastern Europe, Middle East and Africa region. The state-owned electricity and gas company launched and priced a €150 million tap of its 3˝% notes due 2025 on Tuesday at par.

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