熔断！突然大跌，股汇债三杀

Core Viewpoint - Turkey's financial markets experienced a significant downturn on March 19, with the stock market, bonds, and currency all suffering substantial losses, primarily driven by political turmoil and the arrest of a prominent opposition figure [1][4][7]. Market Reactions - The BIST-100 index fell by 6.87%, triggering a market halt, while the banking index dropped over 9.2%, marking the largest decline since May 2023 [4][5]. - The Turkish lira depreciated by over 10% against the US dollar, reaching a historic low, with a peak decline of 14.5% noted [4][5]. - The yield on Turkey's 10-year government bonds surged by 59 basis points to 28.78%, indicating increased risk perception among investors [5]. Political Context - The arrest of Istanbul's mayor, Ekrem İmamoğlu, on charges related to organized crime and corruption has heightened market fears, as he is a key opposition figure and potential challenger to President Erdoğan [7][8]. - The Turkish authorities have also initiated investigations into other municipal officials, further contributing to the political instability [8]. Inflation Data - Turkey's consumer price index rose by 39.05% year-on-year in February, with education and housing seeing the highest price increases at 94.9% and 70.81%, respectively [9][10]. - The inflation rate has been on an upward trend since 2022, peaking above 85% in October 2022, although it has shown signs of gradual decline since mid-2023 due to monetary tightening measures [10].