Turkish bond yld opens at new low, rate cut seen

ISTANBUL Thu Dec 16, 2010 2:47am EST

ISTANBUL Dec 16 (Reuters) - Turkey's benchmark bond yield opened at a record low of 7.28 percent on Thursday, dropping from a previous close of 7.37 percent, due to strong expectations that the central bank will cut its policy rate.

The bank's monetary policy committee is expected to announce a cut in the key repo rate, currently 7 percent, when it meets after the markets close later on Thursday.

The median forecast in a Reuters poll of 16 analysts was for a cut of 50 basis points to 6.5 percent [ID:nLDE6BD0LN], though there was a burst of speculation late on Wednesday that the cut could be larger than that. (Reporting by Simon Cameron-Moore)