2023-11-14 17:47:21
Frankfurt. Turkish bonds could be among the best-performing emerging bonds in 2024, according to Deutsche Bank.
Deutsche Bank, one of Germany’s largest banks headquartered in Frankfurt, reported that Turkish bonds may be among the best-performing emerging bonds in 2024. Deutsche Bank’s information note stated that it is too early to re-enter the Turkish bond market, despite the current repricing and recent aggressive interest rate increases. In the information note, it is stated that there are still a few more months to return to a little more optimism structurally, “We believe that Turkish local bonds will be among the best-performing emerging local bond markets in 2024.” The expression was used.
In the information note, it was emphasized that Turkey’s growth forecast was increased to 4 percent, as growth was above expectations in the second quarter and budget deficit projections were above expectations. The information note noted that inflation has paused at 61 percent due to the softening in domestic demand, the downward trend in inflation and the stability in exchange rates, and included predictions that inflationary pressures will continue in the following months and that inflation may be at 69 percent at the end of the year. In the note, it was noted that the depreciation of TL, the rise in oil prices, the continuity of services inflation and the rise in inflation expectations increased the upside risks in inflation.
In Deutsche Bank’s note, it was pointed out that the Central Bank of the Republic of Turkey’s decision making above expectations regarding monetary tightening, the new practices in the macroprudential framework that started to be implemented by emphasizing TL deposits that are open to protection, and the transparent communication of the bank contain surprising positives for TL. In the information note, a tactical buying suggestion was made for TL.
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