· Turkey’s central bank raised interest rate by 4.75 ppts to 15%, in the first meeting chaired by the new governor. Notably, this rate hike is the biggest in last 2 years. Immediately, after the news Lira strengthened by 3% against dollar as the decision by the new governor is seen positively by investors and analysts.
· In US, jobless claims increased for the first time in 5 weeks as COVID cases keep rising.
· Bitcoin’s comeback – Bitcoin’s price hit the fresh highs, trading over $18,000. Notably, the price has more than doubled during 2020, becoming one of the few assets that have delivered robust growth during the COVID-19 crisis.
· With increased trust towards the Turkish economic bloc, Turkey’s sovereign Eurobond turned out to be the best performer of the week. The yield dropped by 25bps over 12-19 November. Uzbekistan was another best performer among the regional Eurobonds, with the yield down by 16bps over the same period. Yields on other regional Eurobonds remained mostly flat, changing in the range of 1-10bps.
Source - Galt & Taggart
