ISTANBUL, Jan 8 (Reuters) - Turkish bond yields dipped and the lira firmed on Tuesday after treasury debt auctions attracted strong bids from investors seeking high returns.
Turkey borrowed a total of 4.94 billion lira ($2.8 billion) through two debt auctions including a new two-year benchmark bond on Tuesday, paying less than expected as recent increases in yields attracted strong bids from investors.
Yields fell following the auctions, with the current two-year benchmark bond maturing in Sept. 24, 2014 closing at 6.12 percent, from Monday’s close at 6.27 percent.
“Demand for the auctions was high as market players desired to lock in attractive yields after last week’s sell-off,” analysts at Is Investment said in a research note.
“The bond market celebrated the high demand with a downward shift of 8-10 basis points across the yield curve.”
By 1540 GMT, the lira firmed to 1.7790 to the dollar , from 1.7805 late on Monday. Against its euro-dollar basket it eased to 2.0578 from 2.0550.
Istanbul’s main share index closed down 0.08 percent at 80,161 points, after earlier hitting a record high of 81,077.86 points, outperforming a fall of 0.58 percent in the global emerging markets index.
Turkey’s largest mobile phone operator Turkcell rose 1.28 percent to 11.9 lira after HSBC raised its recommendation to overweight from neutral. (Writing by Seltem Iyigun; Editing by Nick Tattersall)