Ankara — After the lira, it’s the turn of Turkish government bonds. The nation’s benchmark 10-year notes slid, sending yields to a record high, as investors increasingly concerned by a lack of central bank moves to backstop the nation’s assets sought higher risk premiums. The lira won a brief respite after slumping the most since an attempted military coup in 2016. Turkish assets have come under fire amid heightened concern over a diplomatic spat with the US, and the central bank’s inability to support the currency against accelerating inflation as well as one of the widest current-account deficits in emerging markets. The lira has weakened about 27% this year and the yield on 10-year bonds has surged more than 800 basis points. "It’s getting nastier," Henrik Gullberg, a strategist at Nomura, said by e-mail. "And it will remain like this until the central bank commits unconditionally to hike rates and keep them high until inflation has turned. The market needs that sort of hard comm...
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