(Bloomberg) -- Turkish bond yields jumped after policymakers scrapped some rules that forced lenders to buy government debt under certain conditions.  

The yield on 10-year notes increased 1.2 percentage points to 27.1%, mirroring moves across the curve. The Borsa Istanbul Banks Index rose as much as 2.1% before trading 0.4% higher. 

The central bank on Friday announced changes aimed at simplifying regulations as part of its pledges to return to monetary orthodoxy. “The aim is to ease access to loans and encourage the transition to liras,” Treasury and Finance Minister Mehmet Simsek said on X, formerly known as Twitter. 

Turkey Eases Securities Maintenance Rules, Promotes TRY Deposits

In the latest move, the central bank terminated some securities maintenance practices, exempted investment goods in export loans, while taking steps to encourage the conversion of foreign currency deposits into Turkish lira accounts.

Market Metrics

  • USD/TRY little changed at 28.1725
  • 5-year CDS -2bps to 417bps
  • Borsa Istanbul 100 Index -0.8% to 7,600
  • U.S. Treasury 10-year bond yield +4bps to 4.89%
  • Brent crude +1.2% to $89.01 per barrel



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