A rally in Turkey’s hard-currency bonds may falter without a more ambitious government tilt toward orthodox monetary policies, investors warn.
The country’s dollar sovereign bonds have returned 8.4% since the first round of voting on May 14, more than twice the average rate of those in other emerging markets, according to data compiled by Bloomberg. Meanwhile, Turkey’s credit-default swaps have tightened more than 300 basis points since the elections to below 400 basis points, the lowest since September 2021.
