Turkish assets continued to be the focus of foreign investors during the week of January 11. In addition to USD 1.7bn in inflows destined to Turkey via standard portfolio channels of bonds, equities and Eurobonds, the swap market also enjoyed USD 1.5bn in inflows during the same period.

Foreign investors were net buyers of USD 433mn in the local bond market during the week of January 11. Accordingly, cumulative inflows reached USD 1.5bn so far this year in the bond market.

It was not a very exciting week for equities though, as net inflows remained miniscule at USD 5mn during the week of January 11. There has been USD 0.2bn in inflows to the equity market so far this year.

The majority of the inflows was destined to the Eurobond market during the week of January 11 thanks to the Treasury's fresh Eurobond issue. Based on the CBT data, the Eurobond position of foreign based investors widened by USD 1.3bn during the week, which has brought two-week cumulative inflows to USD 1.1bn.

There was also a sizeable inflow of USD 1.5bn to the swap market during the week of January 11. Recall that although the flows into the swap market are not reported separately, they can be inferred from the changes in the banks' off-balance sheet FX positions. Accordingly, the swap market attracted a net USD 1.1bn over the first two weeks of the new year.

Source: bne