Turkish Markets Daily on Nostr: Developments in the Eurobond Market Market pricing has crystallized that the Fed will ...
Developments in the Eurobond Market
Market pricing has crystallized that the Fed will start cutting interest rates this year. According to the Bloomberg data screen, the first rate cut is expected in May. At the end of October, this expectation was reflected in US bond yields and the decline in interest rates led to additional declines in EM risk premiums and Turkey CDS premium. If foreign fund inflows intensify as a result of the economic policies implemented in Turkey and US bond yields decline further during the year, Turkish eurobonds may see additional value increases compared to today.
Market pricing has crystallized that the Fed will start cutting interest rates this year. According to the Bloomberg data screen, the first rate cut is expected in May. At the end of October, this expectation was reflected in US bond yields and the decline in interest rates led to additional declines in EM risk premiums and Turkey CDS premium. If foreign fund inflows intensify as a result of the economic policies implemented in Turkey and US bond yields decline further during the year, Turkish eurobonds may see additional value increases compared to today.