Turkish stocks fall to their lowest levels

Reuters said that the Turkey’s main stock index fell 5 percent to its lowest level since January, analysts said, while analysts say foreign investors in need of the lira are scrambling to sell shares and bonds.

Standard 10-year Treasury yields rose to more than 18 percent, while the Turkish banking sector fell 7 percent.

Turkey’s banks have begun to block currency in lira on the London swap market, and will continue until local elections scheduled for at least Sunday, the exchange rate of the pound last night was pushed to a thousand percent in London, sources told Reuters.

“Foreign investors who usually turn to the lira through the swap market are now selling because of the demand for the pound,” said a stock market analyst at a brokerage firm.

The yield on 10-year benchmark bonds rose to 18.23 percent from 17.35 percent on Tuesday.

While the yield on two-year Treasuries rose to 20.53 percent from 19.98 percent.

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