ISTANBUL, April 18 (Reuters) - Turkish bond yields held steady near record lows on Thursday as analysts assessed the prospects for more rate cuts after the central bank lowered key rates this week.
Markets are awaiting this month's inflation report, due for release on April 30, for more clues on monetary policy.
The yield on Turkey's two-year benchmark bond was at 5.56 percent, down from Wednesday's close of 5.57 percent. It dropped below 5.50 percent to a record low shortly after Tuesday's central bank decision.
The bank cut rates by 50 basis points, lowering the one-week repo policy rate to 5.0 percent, the overnight borrowing rate to 4 percent, and the lending rate to 7 percent.
Market attention is now starting to turn to the central bank's quarterly inflation report.
'We will wait for the inflation report ... for clues about the monetary policy stance but one cannot rule out further rate cuts, unless economic activity revives or global liquidity conditions worsen,' said TEB BNP-Paribas strategist Erkin Isik.
The lira eased to 1.7967 to the dollar by 0916 GMT from 1.7953 a day earlier. Against its euro-dollar basket it was steady at 2.0708.
Istanbul's main share index dropped 0.14 percent to 84,282.83 points, slightly underperforming a fall of 0.27 percent in the global emerging markets index.
Shares of mobile phone company Turkcell rose 0.45 percent to 11.15 lira. Turkcell reported a 10 percent increase in its first quarter net profit, beating forecasts, supported by an increase in EBITDA boosted by voice revenue growth.
(Reporting by Seda Sezer; Editing by Catherine Evans) Keywords: MARKETS TURKEY/
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