Benchmark yield on bonds sees historic low
ISTANBUL - Hürriyet Daily News
Traders are seen working at Istanbul Stock Exchange (İMKB). AA photoTurkish benchmark bond yields, which have been dropping since rating agency Fitch decided to upgrade Turkey to investment level on Nov. 5,. saw another record low today.
Yield on the 2-year debt fell to 5.98 percent in closing in Istanbul. The benchmark rate had seen another record at 6.05 percent Nov. 27, mainly due to an ease deriving from the international lenders deal on Greece debt cuts, which boosted investors appetites.
However, the rate slightly increased Nov. 28 upon the lack of significant improvement in U.S. budget talks.
Yesterday’s good market news came from the U.S. economy, as it posted growth at a 2.7 percent annual rate from July through September, much faster than first thought.
The U.S. Commerce Department said yesterday that growth in the third quarter was significantly better than the 2 percent rate estimated a month ago. It was more than twice the 1.3 percent rate reported for the April-June quarter. Earlier optimistic announcements by U.S. officials on a potential solution to solving the so called fiscal cliff also contributed.
The Turkish stock market was also up yesterday. The main Istanbul Stock Exchange (İMKB) index rose 474.40 points or 0.66 percent during the whole session. The index closed at 72,448.89 points.
The Istanbul Gold Exchange (IAB) Index was up 0.33 percent yesterday as gold traded at 99,070 Turkish Liras a kilo. A total of 567 kilograms of gold was traded at the IAB.