Turkish Assets Jump as Erdogan Tilts Toward NATO Deal
- Turkey’s CDS falls after Erdogan agrees to accept Swedish bid
- Banking stocks gain in Istanbul while lira extends decline
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The cost of insuring Turkey’s bonds against default sunk after President Recep Tayyip Erdogan agreed to stop blocking Sweden’s bid to join the NATO military alliance, reducing geopolitical tensions weighing on the country.
Credit default swaps protecting from non-payment on Turkish bonds for five years fell 26 basis points to 460 points as of 5:06 p.m. in Istanbul, on course for the lowest close in 20 months and down from as high as 700 basis points during Erdogan’s reelection in May. The country’s dollar bonds and local stocks rallied while the lira extended its slide.