Economics
Turkish Bonds Tumble as Credit Risk Climbs on Premier's Ouster
- Stocks decline, credit risk climbs to one-month high
- Any renewed political uncertainty credit negative: Moody's
What's Ahead for Turkey After PM Steps Down?
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Turkish bonds retreated the most among major emerging markets and credit risk climbed as investors assessed the economic cost of a political showdown that prompted the prime minister to say he’s stepping down.
The yield on the five-year government note jumped 25 basis points to 9.73 percent, the biggest daily increase since January. Prime Minister Ahmet Davutoglu said he won’t seek reelection at an extraordinary party convention later this month after losing a power struggle with President Recep Tayyip Erdogan. The cost to protect the country’s debt against default climbed to a one-month high and stocks fell for a fifth day.