May 24 2013

Bernanke Risks Souring Lira Bonds On The Risk Of QE Exit

Speculation will be started by Federal Reserve to pare U.S this year asset purchases souring investor sentiment toward the assets of Turkey. It will help to send yields of two years to the biggest increase since the year 2011. Yesterday, the rate on the lira notes climbed 22 basis points to 5.26 percent. It was the steepest gain among 19 markets tracked by the Bloomberg.  

Rate Range Projection by Bank 

Next  Week               100.50 - 103.50

Next 3 Months            95.00 - 105.00

The Chairman of Fed Ben S. Bernanke stated that two days ago the central bank in US may have reduced the stimulus if there were the indications of sustained economic growth. As the Bank of Japan (BOJ) is still easing the liquidation of money flow, the USD will be stronger if it will come into real. But the selling price of USD is at 103.50 levels so for a while this level will be at the top.   

If it comes into the real USD will be stronger as the monetary policy of Bank of Japan is still easing liquidation of money flows, but the USD was sold back at 103.50 Level so for while this level will be the top.