Gross deposit interest was the best-performing instrument in October, returning 1.31 percent in real terms when deflated by the domestic producer price index, according to the Turkish Statistical Institute (TurkStat). Deflated by consumer prices, the same deposit return was 0.39 percent. Government domestic debt securities were close behind, at 0.91 percent against the producer index.
At the other end of the table, equities and precious metals fell sharply. The BIST 100 index lost 14.53 percent in real terms against PPI and 15.31 percent against CPI. Gold bullion dropped 4.70 percent against PPI over the month. By our market data, gold stood at $4,100.07 an ounce as of 07:32 GMT on 9 November.
Currency and bond losses
The US dollar lost 0.04 percent in real terms against PPI, a small move compared with the euro, which fell 2.65 percent. Against consumer prices the dollar lost 0.95 percent and the euro 3.53 percent.
Over three months, deposits were still the strongest performer, with a real return of 2.90 percent against PPI. The BIST 100 posted the largest three-month real loss, at 21.13 percent.
Longer horizons
Over six months, domestic debt securities led with a real return of 3.95 percent against PPI, while the BIST 100 lost 25.17 percent. On an annual basis, the securities returned 5.96 percent against PPI, the best of any instrument, and the BIST 100 lost 13.52 percent.
Gold and the euro also lost ground on a yearly view, with real declines of 10.06 percent and 10.63 percent respectively against PPI. Annual deposit returns were 2.15 percent against PPI, well ahead of the dollar’s 7.24 percent real loss.
Source: TurkStat | Data: Swissquote
