Turkish Yields Head for Record While Lira Loses Rate-Hike Boost
- Lira’s decline is largest in emerging markets on the day
- Uncertainty over policy after elections weighs on sentiment
Turkey’s 10-year bond yields rose for a third day toward the highest closing level on record, as traders braced for a deluge of debt sales next week and turned their attention to the prospect of tighter monetary policy at major central banks. The lira tumbled.
The rout is compounded by a dearth of liquidity before markets close for a religious holiday on Thursday and uncertainty over the direction of economic policy after elections scheduled for next week. President Recep Tayyip Erdogan can win the presidential vote in the first round on June 24 with 50.8 percent support and get the backing of a majority in parliament, according to a poll commissioned by Bloomberg. But a surprise victory for the opposition was also within the survey’s margin of error.