International investors are dipping a toe into Turkey’s long-abandoned debt market as sweeping economic reforms and a surge in yields gradually increase the appeal of the country’s bonds.
Foreign fund managers have bought about $860mn in lira-denominated Turkish government bonds in the second half of this year, the biggest inflows for any half-year period since the start of 2021, according to central bank data.
The trickle of new investments is the latest sign of how the broad economic policy overhaul that began after President Recep Tayyip Erdoğan’s re-election in May has piqued investor interest in Turkish assets, including lira-denominated debt that they have shunned for years.