Sabah newspaper, known for its closeness to the government, reported on the impact of the protests in France, Spain, Italy, Portugal and Albania on the financial markets.
The newspaper reported that losses in European stock markets reached 2 percent, Madrid Stock Exchange's IBEX index lost 1.34 percent and France's 10-year bond interest increased to 4.86 percent.
The news, which highlighted the pressure created by political and social developments in Europe on the markets, did not include any comparisons regarding the losses experienced in Turkey's Borsa Istanbul in recent months and the level reached by bond interest rates.
SIX-MONTH LOSS IN BIST 100 IS 21.15 PERCENT
BIST 100 index at Borsa Istanbul started the day at 11 thousand 473 points.
While the index dropped to 11 thousand 375 points as of 11:00, the loss in the first part of the day reached 0.85 percent.
The longer-term outlook reveals the extent of the depreciation in Borsa Istanbul.
BIST 100 lost 5.41 percent in the last five days, 14.64 percent in the last month, 18.63 percent in the last three months and 21.15 percent in the last six months.
The return of the index since the beginning of the year has remained at 0.93 percent.
Thus, most of the nominal gain during the year was erased after the sales in recent months.
2 PERCENT IN EUROPE, 21 PERCENT IN BIST IN SIX MONTHS
While Sabah's news on European markets reported stock market losses of 1-2 percent as an important result of economic and political uncertainty, losses extending over a much longer period in Turkey were not mentioned.
While the loss of BIST 100 in the last month alone reached 14.64 percent, the six-month loss is 21.15 percent.
The uncertainty created by the recent fund crisis in Turkish markets, the attitude of foreign investors and political developments are also being closely monitored.
FRANCE'S 4.86 PERCENT INTEREST RATE IS IN THE NEWS, Türkiye'S 35.59 PERCENT IS NOT
Another indicator highlighted in Sabah's news was France's 10-year government bond interest.
While the increase in the 10-year bond interest rate in France to 4.86 percent was cited as one of the risk indicators in the markets, the information that Turkey's 10-year bond interest rate was 35.59 percent was not included in the news.
Although the inflation, monetary policy and economic conditions of the two countries are different, long-term bond yields are among the important indicators in terms of showing the return that investors demand for the currency and economy in question.
The rate in Turkey corresponds to more than 7 times the level in France.
WHAT DOES HIGH BOND INTEREST RATE MEAN?
Inflation expectations, central bank policy, country risk premium, public finance outlook and investors' future expectations are effective in keeping government bond yields high.
In countries with high inflation expectations, investors demand higher nominal returns in order to compensate for the possible loss in purchasing power.
Economic and political uncertainties increase risk perception and may cause investors to demand higher interest rates.
For this reason, long-term bond interest rates are considered one of the important indicators used to monitor the market's inflation and risk expectations.
HIGH BORROWING COST ALSO AFFECTS THE BUDGET
High interest rates on government bonds do not only concern investors in financial markets.
The fact that the Treasury carries out new borrowings at high interest rates causes the public borrowing cost to increase.
If maturing debts are converted at high rates, the budget allocated to interest payments will also increase.
This situation can lead to increased pressure on public finances.
HIGH INTEREST INTEREST IS ALSO A PRESSURE FACTOR IN THE STOCK EXCHANGE
Bond interest rates also play an important role in the pricing of other financial assets.
In an environment where government bonds offer high returns, it may be possible for investors to switch from higher risk assets such as stocks to fixed income instruments.
The high interest rate environment also increases the financing costs of citizens and companies through banks' loan pricing.
Increasing financing costs in a wide range of areas, from housing and consumer loans to commercial loans, can also affect consumption and investment decisions.
SAME INDICATOR, DIFFERENT NEWS PREFERENCE
In Sabah's news, the decline in European stock markets approaching 2 percent and France's bond interest rising to 4.86 percent were presented as remarkable indicators for the markets.
In Turkey, the decline of BIST 100 by 21.15 percent in the last six months, the one-month loss reaching 14.64 percent and the 10-year bond interest rate at 35.59 percent were not included in the news.
Although economic indicators in Europe were evaluated together with political developments, the fact that higher market losses in Turkey were not considered in the same context revealed the selective use of data in Sabah's news.
