Turk­ish bond yields ex­tend record low on bank pur­chases

The Pak Banker - - Company& -

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

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