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Last Updated: 11/03/2008
Over the last two weeks, the high volatility in the global markets with the continued concern over the recession in the US economy and problems in the credit market.
Global markets bounced back with the news of banks' agreement to provide financial support to the bond insurer AMBAC as well as the S&P's declaration that MBIA and AMBAC have enough capital to withstand losses and justify their AAA rating and IBM's announcement of plans to buy back up to 15 billion USD of its stocks. Nevertheless, the increase in the unemployment rate, lower-than expected orders for durable goods in the USA and Federal Reserve president Bernanke's disclosure that some small banks may face bankruptcy caused a sell off in the markets.
Benchmark bond rate has broken the important support level 17% due to the higher than expected inflation data for February coupled with the announcement that the Turkish Treasury's March debt program will include mostly long term bonds in this fragile global market conditions. Short term resistance and support levels for benchmark bond are 17.5% - 18% respectively.
