Turkey’s eurobonds rallied and credit default swaps fell after Bloomberg reported that the opposition is looking to tap two popular mayors as vice presidents.
(Bloomberg) — Turkey’s eurobonds rallied and credit default swaps fell after Bloomberg reported that the opposition is looking to tap two popular mayors as vice presidents.
The dollar bonds due May 2047 jumped to almost 70 cents, their highest in more a month, with yields falling below 9%, according to data compiled by Bloomberg. Other bonds also gained. The cost of insuring Turkish debt against default over the next five years also fell to the lowest in a month.
Ankara Mayor Mansur Yavas and Istanbul Mayor Ekrem Imamoglu could be endorsed as deputies to Kemal Kilicdaroglu — the leader of the Republican People’s Party — to break an impasse within the opposition over a joint candidate in May’s election, Bloomberg reported, citing people familiar with the matter. The dispute was hampering a rare chance to unseat the country’s longest-serving leader, President Recep Tayyip Erdogan.
Under the arrangement, Yavas and Imamoglu won’t have to resign from their mayoral duties before the elections, the people said, speaking on the condition of anonymity because the discussions aren’t public.
“I don’t think anyone in financial markets reasonably want to see Erdogan running the show for another five years,” said Cristian Maggio, head of portfolio and ESG strategy at TD Securities in London. “But foreigners have been side-lined long ago and are not active contributors to market moves nowadays.”
Read: Turkish Opposition to Enlist Popular Mayors to Avert Collapse
Read: Turkey’s Iyi Party Reunites With Oppposition Bloc After Spat
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