10y US Treasury As A Global Markets Driver

At the center of all financial markets, we have the market for US Treasury. US fixed income market play a crucial role in the global economy. Treasurys are denominated in US dollars, the main currency used by central banks and major financial institutions around the world. Because the US government owes so much and because investors expect the US government to honour its debts always, the Treasury market is considered the cornerstone of the global financial system.

If we stay focused on Turkish bonds markets, it is hard to regret that it moves in a similar way as US market does after seeing the chart below.

US and Turkey Yields

Well, ahead of FOMC meeting, the rumours are main dynamics and shaping the opinion of all global markets. What we saw previously in US bond market is that the Fed is frightened to death by a sharp rise in yields. It is rational to expect Turkish bond market to maintain the trust of marketplace for a few weeks more.