Morning Commentary: Turkey’s 2028 notes jump after rate hike; Latvia prices two tranches

By Rebecca Melvin

New York, May 24 – Turkey’s bonds jumped on Thursday after the Central Bank of the Republic of Turkey raised its lending rate by 3% in a move to help stem a free fall in the lira.

The bonds were bouncing around but still positive late in Europe’s session.

The Turkey 6 1/8% notes due 2028 were recently 93.518, which was up 1.42 points on the day. The bonds had jumped to as high as 94.2, compared to its close on Wednesday at 92.098.

Turkey’s lending rate is now 16.5% compared to 13.5% previously. The lira, which had dropped to as low as 4.92 to the dollar was around 4.70 recently. Turkey has been struggling with double digit inflation and a sliding currency, but president Recep Tayyip Erdogan has been a vocal opponent of raising interest rates.

Overall spreads were wider on the day, but Lebanon’s sovereign curve tightened, according to a market trader.

New issues in the market were not yet heard in trade. Israel Chemicals Ltd. had priced $600 million of notes on Wednesday, and the Republic of Latvia priced €350 million of new 10-year notes and an add-on of €300 million to existing 2¼% notes due 2047.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.