Turkey 10Y Bond Yield Hits All-time High

Turkey's 10-year government bond yield hit a new all-time high of 28.2% in April due to persistently high inflation and the central bank's tight monetary policy.

The key interest rate was maintained at 50% on April 25th, following a surprise 500bps hike in March.

Policymakers indicated that further rate hikes could be implemented if inflation continues to worsen.

In March, inflation rose to 68.50%, the highest level since November 2022.

Market participants expect inflation to reach 44%, higher than the central bank's forecast of 36% for the year.

Despite efforts by the new economic team to control inflation, price pressures persist due to a weak lira, increased minimum wage, and rising food and fuel costs.