Risks rise in Türkiye’s bond market
Rising global interest rates and liquidity pressures in Türkiye’s domestic fund market are pushing long-term bond yields higher.
Increased risk aversion since mid-September, combined with developments in the fund market, has intensified selling pressure on Turkish bonds.
Meanwhile, expectations for interest rate cuts from the Central Bank of the Republic of Türkiye (CBRT) are putting downward pressure on short-term bond yields, leading to a flatter yield curve. High energy costs and weaker global risk appetite pose upside risks, while slowing domestic demand and its support for the disinflation process stand out as balancing factors for the bond market.
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