Syria Clash Spills Into Markets as Yields Surge: Turkey Credit
This article is for subscribers only.
Bond investors are taking fright after fighting in Syria spilled over the border into Turkey, sending yields up by the most in two months as the government in Ankara retaliated against shelling that claimed five lives.
Yields on Turkey’s benchmark two-year notes rose as much as 18 basis points yesterday, paring the biggest drop in emerging markets this year. The lira weakened the most in two months after Turkey responded to the attack by bombarding of Syrian targets. The gap between Turkish dollar bond yields and the higher emerging-market average narrowed and the cost to insure Turkish debt against default increased.