Turkey Yields Drop Most Since 2004 on IMF Talks, Tax Cut Report - by Ercan Ersoy and Seda Sezer

Turkish bonds surged, cutting yields the most since 2004, on speculation the government is close to signing an accord with the International Monetary Fund and plans to reduce a tax for domestic investors on bond income.

Yields on benchmark bonds plunged as much as 85 basis points to 8.59 percent, the biggest decline since October 2004, according to an ABN Amro index. Yields were at 9.06 percent at 5:30 p.m. in Istanbul. The benchmark ISE 100 stock index added 2.2 percent to 52,825.02, extending this year’s rally to 97 percent, the biggest since 1999.

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