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Turkey dollar bonds fall 1.0-2.5 cents as data shows GDP contraction
December 12, 2016 / 8:57 AM / a year ago

Turkey dollar bonds fall 1.0-2.5 cents as data shows GDP contraction

LONDON, Dec 12 (Reuters) - Turkish dollar debt prices fell sharply on Monday after data showed the first economic contraction since 2009, with the 2034 bond, one of the country’s most traded issues, down 2.5 cents, according to Tradeweb data.

Turkey’s economy contracted 1.8 percent in the third quarter of the year, data showed, pushing the lira down more than 1 percent against the dollar. Data also showed the current account deficit as wider than expected, highlighting Turkey’s vulnerability to global cost of capital.

A deadly bomb attack in Istanbul on the weekend has also underscored the country’s political fragility.

The 2034 bond fell 2.5 cents while the 2036 issue was down 1.6 cents. Issues maturing 2045 and 2030 tumbled 1.9 cent and 1.0 cent respectively.

Reporting by Sujata Rao; editing by Karin Strohecker

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