LONDON Dec 2 Turkey's dollar-bonds fell across
the curve on Friday with some longer-dated issues tumbling more
than two cents to multi-year lows after the lira plumbed new
The sovereign 2036 bond lost 2.141 cents to
99.234 cents while the 2038 issue dropped 2.056
cents to 99.319 cents, according to Tradeweb data. Both bonds
traded at their lowest since early 2014.
Turkey dollar bond yield spreads on the JPMorgan EMBI Global
Diversified - the premium demanded by investors to
the debt over safe-haven U.S. Treasuries - widened by 10 basis
points to 388 bps, the highest since 2012.
The lira moves came after President Tayyip Erdogan urged
Turks to swap foreign exchange for gold or the lira. He also
said there was "no option" other than cutting interest rates to
"The meltdown in the currency accelerated today as the
president has called for the central bank to lower interest
rates even further and for the Turkish population to sell their
foreign currency holdings," said Phoenix Kalen, director of
emerging markets strategy at Societe Generale.
(Reporting by Karin Strohecker, additional reporting by Claire