Immediate fears over the contagion from the economic crisis building in Turkey appear to have been contained as the lira has clawed back at least some of its losses. The rebound has stemmed from the move from the Turkish central bank to reduce the reserve requirements, helping to boost liquidity. The 10 year Turkish bond yield has unwound from an eye watering high of 22.8% on Monday to a marginally less eye watering 20.5% this morning, whilst USD/TRY has unwound from 7.21 to 6.30 this morning. But, whilst, this may have helped to improve risk appetite to an extent, with the safe haven yen giving up gains and Treasury ... (full story)