Turkey's dollar bonds slide with lira ahead of central bank meeting

Credit: REUTERS/UMIT BEKTAS

Turkey's government bonds fell to multi-week lows on Wednesday, as bets on another super-sized interest rate cut by the country's central bank sent the lira down for a fifth straight day.

LONDON, Sept 11 (Reuters) - Turkey's government bonds fell to multi-week lows on Wednesday, as bets on another super-sized interest rate cut by the country's central bank sent the lira TRY= down for a fifth straight day.

Money markets were pricing in a 300 basis point cut by the central bank when it meets on Thursday and the lira's drop matched the length of the losing run it saw when it hit its lows for the year back in May.

Turkey's longer-dated bonds were down between 0.4 cent and 1 cent in the dollar. That left some issues maturing from 2038 onwards at their lowest since July US900123AY60=TE, US900123BB58=TE and the 2043 bond US900123CB40=TE at its lowest level since late August.

(Reporting by Marc Jones, editing by Karin Strohecker)

((marc.jones@thomsonreuters.com; +44 (0)207 542 9033; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))

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