Turkish assets lower following US-Turkey meeting

US stocks closed mostly high even as treasury yields rose; 10Y yields closed 0.04% higher at 1.4940%. The NASDAQ continued its ascent closing 0.74% up while the S&P gained 0.18%; the DOW was however 0.25% lower.

The pound was little changed following the UK’s decision to delay the end of COVID-19 restrictions. Having previously stated that restrictions would end on June 19, Prime Minister Boris Johnson delayed the plan until July 19. The yield on 10Y UKTs were lower early Tuesday trading having closed higher at 0.741% on Monday.

Asia traded mixed on Tuesday following in the footsteps of Wall Street’s performance on Monday. The CSI and HANG SENG resumed trading on a bleak note, sliding 1.11% and 0.60% respectively. The NIKKEI and ASX were higher in contrast, surging at 0.96% and 0.92% respectively.

The lira reversed last week’s gains after the much-touted meeting between President Erdogan and President Biden did not produce the expected thawing in the countries’ tensions; furthermore, President Erdogan’s insistence that the purchase of Russia’s S-400 missile system would not change dented hopes for any imminent progress. The benchmark Borsa Istanbul 100 continued Monday’s slide at the open, trading 0.25% lower at 10:30 Istanbul time as did TURKEY 31s which were yielding 0.15% higher than Monday’s low.

Kenya is finally set to tap international markets for debt with investor meetings scheduled for this week on 12-15Y WAL sinkable bond. The investor meeting comes on the heels of a World Bank loan of $750 million on Friday that is meant to help improve the country’s fiscal and debt sustainability. KENINT 32s were trading slightly lower at the open on the news.