Highest bond purchases by foreigners in two months

As positive reports regarding TL bonds have been coming in one after another from foreign institutions, it has been observed that the interest of foreign investors is also increasing.

According to data from the Central Bank of the Republic of Turkey (TCMB), foreign resident investors made a net purchase of 131 million dollars in bonds during the week of November 10. Thus, the net bond purchases by foreigners reached their highest level since the beginning of September.

According to the same data set, the net purchase of stocks by foreigners was recorded at 7 million dollars for the week of November 10.

The latest report on TL bonds came from BNP Paribas.

In the institutional report signed by BNP Paribas Emerging Markets Chief Strategist Burak Başkurt, it was stated, "However, further correction is needed in short-term TL bonds."

The report noted that the institution's recommendation for TL and TL bonds in its model portfolio is 'neutral,' but it was predicted that short-term bonds would also become attractive once the correction ends.

Before BNP Paribas, Deutsche Bank had also expressed a positive view on TL bonds.

According to Deutsche Bank analysts, Turkish lira-denominated bonds, which have had the worst performance among emerging countries this year, will become the best-performing bonds in 2024.

The bank's strategists, led by Christian Wietoska, had stated, "It is still a few months too early to start buying structurally. We believe that local bonds need to reprice by another 200-400 basis points, but that they will offer structural value after that."

News Source: 12punto