Turkish Lira Bonds Sink as Weak Local Demand Meets Oversupply

  • Investor appetite low as Turkish rates seen higher for longer
  • Treasury rollover ratio above 200% also increases pressure
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Turkish lira bonds have sharply declined this month, with yields surging after weak local demand in auctions.

The yield on 10-year lira bonds remained above 29% on Tuesday after hitting a record high at that level on Monday. The curve has shifted higher across all maturities this month as local lenders pulled back their purchases.