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Turkey Debt Lures Most Foreign Money Since 2013 in Market Bounce

  • Inflows in 2016 follow two years of net outflow of funds
  • Union Investment considers raising exposure to Turkish debt
Updated on

Foreign investors are buying up Turkish lira bonds at the fastest pace in three years as a shift in mood among money managers in favor of emerging markets gathers pace.

Holdings of Turkish local debt have increased by $2.38 billion this year, the most for the period since 2013, after a record outflow from stocks and bonds in 2015, helping drag yields on 10-year government bonds down more than 70 basis points this month. This makes Turkey the best-performing emerging market after Brazil, according to data compiled by Bloomberg.