Turkish bond yields extend record low on bank purchases
ANKARA: Turkish bond yields extended a record low by declining for a fifth day, the longest streak in six months, due to typical year-end buying by banks. Yields on two-year benchmark bonds fell 7 basis points to 7.12 percent in Istanbul at 2:42 p.m., after declining to an intra-day low of 7.10 percent, according to RBS Istanbul Benchmark Bond Index.
The yield has fallen 74 basis points this month, headed for the biggest monthly drop since September 2009. "Banks with large bond holdings in their portfolios seek to polish their yearend balance sheets by pulling down bond yields through trading in thin volumes," Murat Yardimci, head of trading at ING Bank AS in Istanbul said by telephone. Bond investors earn profits from falling yields. -PB News