* Lira weakens, shares firm
* Attention turns to central bank meeting
* Fund managers expect eurobond
(Adds closing prices, eurobond expectation, Karsan)
ISTANBUL, Feb 9 (Reuters) - Turkish bonds extended a week-long fall on Wednesday, hit by worries over inflation and further central bank policy tightening ahead of next week's monetary policy committee meeting.
The yield on the benchmark Nov. 7, 2012 bond rose to 8.62 percent from 8.47 percent on Tuesday, extending rises from 8.39 percent at the end of last week. In Thursday-dated trade it slipped back to 8.53 percent.
The lira weakened to 1.5860 against the dollar in interbank trade, from a previous close of 1.5760.
Istanbul's main share index closed up 0.48 percent at 65,569.61, adding to gains of 0.54 percent a day earlier. Turkish shares have weakened since the start of 2011 after rallying 27 percent last year.
As the fourth-quarter earnings season begins, solid profits from industrial companies could drive up the share index, but banks are taking a hit from increases to required reserve ratios by the central bank.
Loans surged 34 percent last year but the bank would like to limit credit growth this year to 20-25 percent.
The central bank cut interest rates in December and January in a surprise change in policy but at the same time raised banks' required reserve ratios in order to ensure an overall tightening effect.
Its next policy meeting on Feb. 15 sees analysts split over whether it will cut interest rates again. Governor Durmus Yilmaz has reaffirmed the policy was for gradual tightening and declined to rule out further rises in reserve requirements.
Uncertainty about the bank's next move and complaints over its policy visibility have made bond markets broadly jittery.
Separately, senior Turkish treasury officials will meet investors at a roadshow in London next week and fund managers said on Wednesday the country could be gearing up to issue its second international bond of the year.
Turk Telekom shares rose 2.7 percent to 6.94 lira after the firm posted a 31.8 percent rise in net profit to 2.451 billion lira ($1.56 billion) in 2010.
Sales rose 2.7 percent from a year earlier to 10.85 billion lira. The telecoms group did not provide fourth-quarter figures, but based on previously released data, net profit in the fourth quarter stood at 559 million lira, exceeding a Reuters poll forecast of 535 million lira.
"Turk Telekom reported strong fourth-quarter and full year 2010 results that significantly exceeded our above consensus estimates," JP Morgan wrote in a note.
Shares in automaker Karsan rose 2.1 percent to 1.98 lira on speculation that it could win a contract to produce New York taxis. It is one of three finalists in the tender. (Reporting by Daren Butler and Alexandra Hudson; Editing by Ron Askew)