* Lira firmer, shares dip
* Inflation data supports rate-cut expectations
* U.S. jobles data hits sentiment
* Dogan-owned Hurriyet share up on sale rumour
(Adds details)
ISTANBUL, Oct 2 (Reuters) - The yield on Turkey's benchmark bond fell to a record low of 8.39 percent in over the counter trade on Friday, extending declines following September inflation released after markets closed.
The lira was also firmer while shares fell, hit by U.S. jobless data.
The yield on the benchmark bond fell from 8.55 percent before the September inflation figures, which reinforced expectations of further rate cuts by the Central Bank this year as it seeks to galvanise the ailing economy.
Turkey's consumer prices posted a small gain of 0.39 percent in September, slightly lower than expected.
According to data from the Turkish Statistics Institute, consumer prices rose 5.27 percent on the year, close to the 40-year-low of 5.24 percent posted in May, keeping inflation comfortably within the Central Bank's official year-end target of 7.5 percent.
The Central Bank has cut its benchmark borrowing rate to a record low of 7.25 percent, in a series of interest rate cuts totalling 950 basis points since November last year.
Istanbul's main share index closed 1.98 percent lower at 46,856.94 points, underperforming the MSCI emerging markets index, which was 1.05 percent down.
European shares extended losses on Friday after jobless numbers in the United States for September were higher than forecast, fuelling fears the weak labour market could undermine economic recovery in the world's largest economy.
The lira currency strengthened slightly against the dollar on the interbank market after September data was released to trade at 1.4905 lira in Monday-dated trade.
SALE RUMOURS
Bucking the trend on Turkey's blue chip index was Hurriyet Gazetecilik, owned by Turkey's largest media company Dogan Yayin Holding, which saw its shares rise as much as nince percent on Friday on talk its parent may sell the newspaper group to help fund a $3.2 billion tax bill.
Hurriyet closed 3.38 percent higher after earlier gaining as much as 9 percent.
"There are so many local-based rumours tossed around, mainly these rumours refer to Dogan Group selling assets, but I believe Hurriyet is the last thing the Dogan Group would sell as it's one of the most valuable assets," said Kagan Cevik, managing director of equities at Standard Unlu.
Several Istanbul-based analysts, who declined to be named, also mentioned similar rumours.
Dogan Yayin declined to comment on Hurriyet's sharp share rise.
Dogan Yayin, which controls half of the Turkish media market, has accused the government of singling it out because of critical coverage of Prime Minister Tayyip Erdogan's Islamist-rooted AK Party. The government denies this.
Officials from the IMF and World Bank have gathered in Istanbul ahead of a Oct 6-7 meetings, and Erdogan told reporters on Thursday evening that the meetings or events beforehand could lead to developments on Turkey's negotiations with the International Monetary Fund.
Turkey's last accord with the global lender worth $10 billion expired in May of last year. (Reporting by Thomas Grove and Behiye Selin Taner; Editing by Victoria Main)