Turkish stocks, bonds ease on global gloom

ISTANBUL, Feb 28 (Reuters) - Turkish stocks and bonds softened on Thursday on the back of negative U.S. economic data and gloomy European stock markets, but the lira was supported by the dollar nearing record lows in global markets.

A spate of negative data from abroad is hurting sentiment but traders are waiting for the Turkish Treasury's borrowing programme for March to give direction to the debt market trade, which remains on a narrow band.

Istanbul's main share index .XU100 fell 0.94 percent to 46,823.30 points. A surprisingly big jump in weekly jobless claims in the United States added to concern about the health of the world's biggest economy.

"Today's fall should not be taken too seriously. There is no need to be pessimistic. We can see purchases soon if markets are convinced that the Central Bank would cut rates by another 25 basis points next month," said one banker.

Market participants may start buying as soon as next week on the expectation of new rate cuts, said the same banker.

The Central Bank has slashed a combined 225 basis points off the benchmark borrowing rate since September, reversing sharp hikes carried out in 2006.

The lira firmed slightly to 1.1820 against the dollar versus the previous day's 1.1850, and was 2 percent stronger than a week ago.

The yield on the benchmark Oct 7, 2009 bond <0#TRTSYSUM=IS> rose to 16.80 percent from 16.74, a day after the Treasury sold $1 billion worth of 30-year dollar-denominated eurobonds at a yield of 7.55 percent.

Shares in Turkey's leading mobile firm Turkcell (TCELL.IS: Quote, Profile, Research) rose 0.82 percent after its CEO told Reuters it expects to complete within 30 days talks on buying a stake in Syria's biggest mobile phone operator Syriatel and will decide within three months whether to buy an east European operator.