Türkiye Bond Interest Dynamics and Liquidity Problems

The rise in global bond interest rates and liquidity problems in the domestic fund market are pushing up long-term bond interest rates in Türkiye.

Interest rate cut expectations from the CBRT suppress short-term interest rates, causing the yield curve to flatten.

Behind this divergence are the pressures created by energy costs and weakening risk appetite, as well as the support given to disinflation by the slowdown in domestic demand.

Aslı Savranoğlu Seren

Behind the rise in Turkish bond interest rates in the last month, the risk reduction trend observed worldwide and the "fund crisis" that has created a liquidity squeeze in domestic financial markets since mid-September stand out.