Dec. 9 (Bloomberg) -- Yields on Turkish 10-year bonds dropped to their lowest level in a month as Europe planned to boost its rescue fund and tighten budget deficit rules.
Yields on government bonds maturing Jan 15, 2020 fell for a third day to 9.73 percent, the lowest level since Oct. 11.
Leaders holding all-night talks in Brussels added 200 billion euros ($267 billion) to their crisis-fighting warchest and tightened anti-deficit rules, an accord hailed by European Central Bank President Mario Draghi as a “very good outcome.”
“We are seeing very serious interest in 10-year bonds and they performed really well,” Bugra Bilgi, a hedge fund manager at Garanti Asset Management, said in e-mailed comments. Fundamentals support longer-term Turkish bonds, he said.
Yields on the benchmark two-year bonds increased three basis points, or 0.03 percentage point, to 10.31 percent, a Royal Bank of Scotland index of securities showed. The lira was little changed at 1.8467 per dollar.
--Editors: Ash Kumar, Peter Branton
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