May 29, 2018 / 7:13 AM / a year ago

Turkish dollar bonds rise after central bank moves to simplify policy

LONDON, May 29 (Reuters) - Turkish sovereign dollar bonds rose across the curve on Tuesday after the central bank said it would return to using the one-week repo rate as its monetary benchmark.

The bank said on Monday the repo rate would be set at 16.5 percent and would once again be regarded as the main rate. The new framework takes effect on June 1.

The gains were greatest at the long end of the curve according to Tradeweb data, with the May 2040 issue up 1 cent to 95 cents in the dollar, a two-week high.

The February 2045 eurobond gained 1.3 cents to trade at 92.8 cents in the dollar, also a two-week high.

For years the central bank has relied on multiple rates to set borrowing costs, creating a complex system that many economists say has made policy less predictable.

Reporting by Claire Milhench; editing by John Stonestreet

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below