Turkish Lira Rises After Failed Coup as Stocks Slide With Bonds
- Borsa Istanbul 100 Index retreats the most in three years
- 10-year yields soar most since 2013, corporate bonds decline
Wither Istanbul in Failed Turkish Coup Fallout?
Turkey’s lira rebounded from its biggest retreat in eight years after the government thwarted a coup attempt that erupted Friday. Bonds tumbled as the cost of insuring the country’s debt soared, while the nation’s largest lenders led a slump in stocks.
The currency jumped as much as 3 percent as traders said local investors were selling dollars to take advantage of Friday’s slump. It was trading 1.4 percent stronger at 2.9731 per dollar as of 5:43 p.m. in Istanbul, trimming Friday’s 4.6 percent decline. The Borsa Istanbul 100 Index, which had closed before the clashes began, dropped 7.1 percent, the most in three years. Yields on 10-year government bonds jumped 64 basis points, their biggest advance since 2013.