Bond Market Corner Wants No Part of Euphoria Over Erdogan U-Turn

A selloff in Turkey’s local-currency debt is revealing just how much skepticism still exists among some investors toward President Recep Tayyip Erdogan’s sudden embrace of more conventional policies.

With a loss of about 11%, the government’s lira bonds have been the worst performer across emerging markets since Erdogan said last week his country will lean on monetary tightening to rein in price pressures.