We tackle the previously unaddressed problem of unsupervised determination of the optimal morphological segmentation for statistical machine translation (SMT) and propose a segmentation metric that takes into account both sides of the SMT training corpus. We formulate the objective function as the posterior probability of the training corpus according to a generative segmentation-translation model. We describe how the IBM Model-1 translation likelihood can be computed incrementally between adjacent segmentation states for efficient computation. Submerging the proposed segmentation method in a SMT task from morphologically-rich Turkish to English does not exhibit the expected improvement in translation BLEU scores and confirms the robustness of phrase-based SMT to translation unit combinatorics. A positive outcome of this work is the described modification to the sequential search algorithm of Morfessor (Creutz and Lagus, 2007) that enables arbitrary-fold parallelization of the computa...