Foreigners Double Holdings of Long-Abandoned Turkey Bonds
- Foreign investors bought $891 million of lira bonds last week
- Purchases indicate carry traders are returning to Turkey
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Turkey’s local-currency bonds, long abandoned by overseas investors, saw the biggest inflow in at least three years last week, as foreigners roughly doubled their holdings from all-time lows.
Foreign investors bought a net $891 million of lira-denominated government notes last week, the biggest weekly purchase in records going back to September 2020, taking their cumulative holdings to $2.4 billion from all-time lows of just over $1 billion. The inflow into equities was $562 million in the week, also the highest since at least 2020.