Increase In Overnight TL Swap Rates Continues

After the change in the CBRT's management, the overseas overnight TL swap rates, which increased on the first trading day, are also rising on the second day.

Increase in overnight TL swap rates continues. After the governorship change in the Central Bank of the Republic of Turkey, overseas overnight TL swap rates, which rose on Monday, continue to rise on the second day. The upward momentum seen in the overnight TL swap rates abroad is increasing. After the seat change under the governorship of the Central Bank of the Republic of Turkey (CBRT), the overnight TL swap rates abroad reached 440 percent on the first transaction day. Weekly TL swap rates climbed to 250 percent. The weekly swap rates, which completed 14.2 percent on Friday last week, increased by 100 percent on the first trading day following the change of duty at the CBRT. Following the change of duty at the Central Bank, the first quotations in USD/TL exchange rate increased by 16 percent on Monday and the level of 8.47 was seen. After a fluctuating day, the exchange rate had completed the day at 7.80. While the BIST 100 index closed the day with a decline of nearly 10 percent, Turkey’s 10-year TL-denominated bond yield increased by 483 basis points and completed the day from 18.89 percent. The dollar-denominated bond yield of the same maturity rose 138 basis points in one day. After the change, Turkey’s 5-year CDS premium climbed to 455 basis points with a record daily increase. The 3-month option volatility of the USD/TL also increased to 32 percent.