LONDON, June 5 (Reuters) - Turkey’s dollar-denominated bonds came under renewed pressure on Tuesday, with longer-dated securities suffering most as the lira began to wilt again ahead of a crunch central bank meeting.
The 2026 government bond fell 0.9 cents to 85.105 cents, while most bonds maturing in 2030 and beyond lost around 0.7 cents.
The lira traded as much as 0.9 percent weaker too and has dropped 18 percent since the start of the year.
“The driver in the credit space is once again the currency and as more and more investors making the link between the currency depreciation and the overall credit worthiness of the Turkish economy,” said Inan Demir, senior emerging markets economist at Nomura.
Data on Monday had shown consumer prices rose a faster-than-forecast 1.62 percent last month. That boosted expectations among analysts that the country’s central bank will need to raise interest rates again when it meets on Thursday having jacked up them 300 basis points on May 23. (Reporting by Karin Strohecker; editing by Marc Jones)