Turkey Gloom Seen in Yields Above Russia as Inflation Risks Grow
- Real yields on lira bonds climb to highest since 2011
- Bond allure tempered by political risk, inflation outlook
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In a sign of just how pessimistic investors are growing on Turkey, real yields soaring above Russia still aren’t high enough for many bondholders.
The slump in Turkish government bonds has sent two-year yields rising nearly 3 percentage points this year, lifting the extra rate over inflation to more than 4 percent, the highest since 2011. Real yields on equivalent debt from South Africa and Russia, countries with similar credit ratings, are at least 190 basis points lower.