TURKEY: CDS, TRY, Turkish Banks Rallying on CHP Ruling
Oct-24 08:34
- Extended reaction to the court ruling is resolutely positive for Turkish markets - the Borsa Istanbul is rallying hard, led by banks - while credit default swaps are under notable pressure - off over 10bps on the day.
- Meanwhile, USDTRY has corrected lower, dropping around 0.2% but it's the Grand Bazaar rate that could be worth watching: currently off 0.1% on the day to 41.985 but could come under additional pressure.
- The ruling ("it had no basis") reduces political uncertainty considerably in Turkey and avoids a worst-case scenario of civil unrest on claims of government overreach. Markets had been particularly sensitive to this newsflow given the forced actions of the CBRT earlier this year, in which they hiked rates intra-meeting to stabilise the Lira after the arrest of Istanbul's mayor and opposition figure Imamoglu.
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EURIBOR OPTIONS: Ratio Put Spread Strip
Sep-24 08:31
0RZ5 97.9375/97.75ps 1x2 with 2RZ5 97.75/97.625 ps 1x2, sold the strip at 2.25 in 2.5k.
EURIBOR OPTIONS: Call Spread Buyer
Sep-24 08:24
ERM6 98.25/98.37cs, bought for 2.25 in 10k.
CROSS ASSET: USD extends small gains
Sep-24 08:09
- No real reaction in Bund, althought it has pushed higher after the German IFO missed expectatio, came below consensus, the EURUSD dipped to session low on tyhe back of it.
- The liquidity has been quite poor acroos assets in early and most of the moves in G10 FX have been a function of the Dollar bid, as Cable also push through a new intraday low.
- Closest Technical in G10 FX is in Cable, with the next support eyed at 1.3458, the Trendline support drawn from the Aug 1 low.
