Biden Victory Odds May Explain Turkey’s Surprise Eurobond Sale
- Democrat may be less forgiving on Turkey compared to Trump
- U.S. election may trigger volatility in global debt markets
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The increasing prospect of a Joe Biden victory in the U.S. presidential election next month may be the key reason why Turkey returned to international bond markets, despite the premium demanded by investors amid mounting regional risks.
In its first deal since February, the Ankara-based Treasury sold $2.5 billion of five-year dollar-denominated bonds, paying a coupon of 6.375%. That compares with just 1.35% for Mexico’s 750 million-euro ($883 million) seven-year sustainability bond sold last month, and is more than two percentage points higher than the rate on Turkey’s previous sale of five-year securities.