September 4, 2019 / 9:52 AM / 2 months ago

Turkey dollar bonds hit near-one month highs on rate cut hopes

LONDON, Sept 4 (Reuters) - Turkey’s sovereign dollar bonds hit the highest level in nearly a month on Wednesday, extending a four-day run of gains, in anticipation of further interest rate cuts by the central bank.

Longer-dated maturities had the largest gains with the 2038 issue rising 1.1 cents, the most since Aug 7, to 101.2 cents in the dollar, according to Tradeweb.

On Tuesday, data showed inflation fell to 15.01% in August, resuming its downward trend, giving the lira another boost after figures on Monday showed the economy shrank less than expected in the last quarter.

“Investors feel the weakness in inflation data last month gives the central bank some cover to adjust rates further. We are expecting a 250 basis points cut at the next meeting,” said Jason Tuvey, senior emerging markets economist at Capital Economics. (Reporting by Tom Arnold, editing by Karin Strohecker)

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