NEW YORK (Reuters) – The cost to ensure exposure to Turkey’s sovereign debt jumped on Tuesday and Turkey’s dollar-denominated bond prices fell a day after President Tayyip Erdogan’s pledge to continue cutting interest rates.
Turkey 5-year credit default swaps added 17 basis points (bps) from Monday’s close to 736 bps, levels last seen during the global financial crisis in 2008, data from S&P Global showed.
Bond prices were lower by more than 1 cent for most issues, with the September 2027 bond down 1.05 cents to 96.83 and yielding 9.1%.
Speaking after a cabinet meeting, Erdogan said Turkey will not raise interest rates but rather continue cutting them in the face of high living costs.
(Reporting by Rodrigo Campos in New York and Marc Jones in London; Editing by Chizu Nomiyama)
