TR govt yield chart is all over the place last cpl years....right now it has flattened from previous inversion.
Turkey Government Bonds and Yields Curve. Updated charts and tables, agencies ratings, spread comparisons, current prices.
www.worldgovernmentbonds.com
It could re-invert again soon from the higher inflation caused by the I/R decrease.
This flat curve is pretty bad too....again because of the dbl digit inflation pushing it to this level.
There is very little difference between the whole spread....i.e you get 17 % return for maturity of 3 months....and 18.5% for maturity of 10 years.
There is no point at all for going for a long term bond...why wait 10 years, just get similar in 3 months etc...and re-invest for another 3 months etc.
It shows the short-term vicious cycle TR govt has put the economy into....largely due to lack of investment in last 5 - 10 years (relative to size of TR economy).
TR market cap (kind of like total "leveraging" potential) peaked around 2012 at 315 billion USD.
This was a huge increase from 30 billion USD in early 2000s.
Since then it has declined to 200 billion USD or so...and been stuck there since 2013.
Quantity wise TR should be aiming for 100 - 200% of GDP here to begin with (so plenty of wiggle room on rainy day periods)....instead of like 30% its stuck now.
It shows the hot money reliance (as this is easier esp with pre 2008 USD) in the 2000-2010 decade....when TR needed good balance of cold hard money that decade and the next one too.
Cold hard productive long term assets is name of the game (it puts the strongest floorboards).
That also needs deepest trust in the govt and institutions by investors and capital providers....as they know they cannot exit on a whim.
This is all related to the big problems in banking sector that AKP admin has layered over and kicked can on.
What we see today is some long term mismanagement playing out now in various different ways.