Al-Qaeda Offshoot on NATO Border Threatens Turkish Rally
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The best bond rally in major emerging markets is faltering as Turkey comes under pressure from a breakaway al-Qaeda group battling government forces in neighboring Iraq.
The lira fell yesterday by the most in more than four months, while bond yields and credit-default swaps climbed, as violence surged across parts of northern Iraq near the border. Militants from the Islamic State in Iraq and the Levant, which broke ranks with al-Qaeda during fighting in Syria, took Turkish diplomats from the consulate in Mosul captive yesterday after the city was captured two days ago.