Turkish bond yields fall on rate cut expectations

ISTANBUL, July 2 (Reuters) - Turkish bond yields fell to their lowest since May 7 on Thursday on expectations of low June inflation data and a central bank rate cut this month. The Turkish Statistics Institute will release the inflation data at 1400 GMT on Friday. A Reuters poll showed the consumer price index (CPI) was seen climbing 0.11 percent month-on-month in June. 'Hope for an interest rate cut is the biggest factor moving the bond market,' said one banker, who declined to be named. Comments by central bank Deputy Bank Governor Erdem Basci that there was room for further rate cuts, along with a 1.67 percent month-on-month fall in retail prices in Istanbul in June, bolstered rate cut hopes. 'Basci's remark that there was still space for interest rate cuts once more turned eyes to inflation ... We retain our view that the... [read full story]                    

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