Foreigners Are Flocking into Turkish Lira Bonds at Record Pace.

Foreign investors have been purchasing lira-denominated Turkish government bonds at a record pace, with a net purchase of $1.3 billion in the week through May 17. This brings the total inflow over the past four weeks to $5.5 billion, the largest on record. The increased purchases are attributed to pledges of monetary orthodoxy, lower inflation, and a more market-friendly economic team appointed by President Recep Tayyip Erdogan. Bank of America and Citigroup have both expressed positive sentiments about Turkish markets, with the former recommending investors buy lira forwards. The amount of Turkish government debt held by non-residents has tripled this year to $8.2 billion. [Extracted from the article]