Last week with 7 titles – Bloomberg HT
While the domestic markets in Turkey fluctuated with the developments related to the elections, it was seen that the developments in the USA came to the fore in last week’s international agenda.
Here are the top news from last week
1- Turkey’s risk premium has fallen below the critical threshold
While the rally in Turkey’s bonds drew attention, the risk premium fell below the critical threshold.
Turkey’s 5-year credit default swap fell below 500 basis points for the first time since December 2022. A 42 basis point decrease was observed in the risk premium. It was the steepest drop since November.
Volatility at 2-month high
As Turkey approaches the elections, the movement in the foreign exchange market draws attention. The volatility of the dollar/TL increased due to the developments in the political scene.
3- Türkiye has been running a current account deficit for 17 months
The Central Bank of the Republic of Turkey (CBRT) published the balance of payments statistics for March. The data showed that Turkey had a current account deficit of 4.5 billion dollars in March. Thus, a current account deficit was seen in the Turkish economy for 17 consecutive months.
4- Biden’s debt limit meeting with Congress leaders postponed
White House officials reported that US President Joe Biden’s debt limit meeting, which was planned to be held on Friday, with 4 Congress leaders, has been postponed until next week.
5- Inflation in the USA came in line with expectations in April
Inflation data, which are critical for the Fed’s monetary policy path, were announced. While the data showed a moderate pullback in core inflation, the headline data came in line with expectations.
6- “We are moving towards an agreement in the grain corridor”
Minister of National Defense Hulusi Akar stated that the parties are approaching an agreement on the grain corridor whose negotiations are ongoing.
7- No surprises at the Bank of England
The Bank of England (BoE) increased its policy rate by 25 basis points, in line with expectations. BoE Chairman Andrew Bailey said that they no longer expect a recession in the country and that a moderate growth will be seen, and that interest rate hikes may continue if conditions warrant.