Bond Traders Trim Bearish Turkey Bets on Possible Erdogan Defeat

Bond investors with bearish bets on Turkey are reassessing their views as a tightly contested election campaign threatens an end to President Recep Tayyip Erdogan’s two-decade rule — and his unconventional economic path.

Turkey’s dollar debt has outperformed all but one of its developing-nation peers this month as investors prepare for a possible reversal of Erdogan’s unorthodox policies, which have sparked the worst inflation crisis in decades and led to an outflow of international capital from the $905 billion economy.