Foreign Investors' Bond Frenzy Hits $505 Million Record

While foreign investors' appetite for Turkish equities remains lukewarm, government bonds have become an irresistible magnet.

Bond Appetite Peaks: What Drives the $505 Million Surge

■$505 million of new bond purchases eclipsed last week's $275 million level.

■The jump reflects a reshaping of global risk sentiment and a tilt toward Turkey's attractive fixed‑income yields.

■Stability signals from the CBRT’s FX and rate policies have paved the way for foreign institutions to overweight bonds in their portfolios.

Equity Cold Snap: A Meager $1.5 Million Purchase

■In the week of August 7, foreign investors bought only $1.5 million worth of equities.

■In contrast, they sold $185.9 million of shares, resulting in a net outflow of $184.4 million.

■Low liquidity and regional geopolitical uncertainties are dampening risk appetite on the equity side.

CBRT Data and Weekly Flow

■According to the CBRT weekly report, foreign investors' total bond purchases rose 82 % week‑over‑week.

■Equity flow, however, plunged 99 %, staying far below the previous week’s figures.

■This dual trend signals a strategic shift toward fixed‑income assets for yield‑seeking foreign funds.

This sudden surge in Turkey's bond market should be read as a tactical move by high‑yield seeking foreign funds. Yet the chill in the equity market could strain local companies' liquidity needs and negatively impact short‑term capital flows. Investors must adopt a balanced stance, mindful of FX volatility and potential rate‑tightening risks.