Overnight TL Swap Rates Decreased

After the governorship change at the CBRT, overnight TL swap rates, which increased during the first two trading days, decreased.

There was a decrease in the overnight TL swap rates. After the dismissal of Naci Ağbal, the head of the Central Bank of the Republic of Turkey (CBRT), and the appointment of Şahap Kavcıoğlu, overnight TL swap rates, which rose in the first two trading days, decreased compared to the beginning of the week in the middle of the week. Overnight TL swap rates, which tested over 1,300 percent in Tuesday's transactions, were pulled up to 50 percent. The weekly TL swap rates abroad also reached around 50 percent. 400 percent levels were seen here on Tuesday. On Friday, the level was at 14 percent here.

Benchmark Bond Interest Reached 20 Percent

The USD/TL exchange rate, which fluctuated after the change in the administration of the Central Bank of the Republic of Turkey, reached over 8 again in the middle of the week. It turned up the exchange rate direction, where the search for balance was observed in the first transactions. Bond rates did not go unnoticed in pricing for Turkish assets. The benchmark bond interest rate tested the 20 percent level. TL offshore overnight forward returns were 46 percent. The 1-month implied volatility of the TL is close to 40 percent. While the 10-year bond interest declined by 33 basis points to 18.8 percent, the yield of the 2-year bond increased by 60 basis points to over 20 percent.