Risks Behind the Rise in Turkish Bond Yields
The decrease in global risk appetite and domestic liquidity issues have been influential in the increase of bond yields over the past month.
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Behind the recent rise in Turkish bond yields over the past month lie the global risk-reduction trend and the funding crisis that has led to liquidity tightness in the market since mid-September.
Global and Local Developments
According to analyses, the recent volatility observed in the Turkish bond market is a joint outcome of risk perception in international markets and domestic dynamics.
Liquidity Tightness and Its Effects
The funding crisis that has manifested itself in domestic financial markets since mid-September has created liquidity tightness across the market, putting upward pressure on interest rates.