As Eurozone member states offer negative bond yields and the US Fed is cutting interest rates, emerging economies see an increased interest for their sovereign debt, not least Turkey.

On Tuesday Turkey announced plans to $1bn dollar-denominated five-year bonds for the first time since March, as investors are seeking higher yields. This will be the fourth bond action this year denominated in a foreign currency.

Turkish dollar-denominated bonds are expected to yield 6.65%, that is, a spread of around 4.9% from US Treasuries. That is attractive in a zero or negative yield environment in developed markets.

Meanwhile, Turkey’s inflation rate saw its biggest drop in months in June. Consumer prices increased by “merely” 15.7% in June, year on year, compared with 18.7% in May. Turkey has struggled with galloping inflation since thee summer of 2018, as the lira lost 30% against the dollar and inflation reached of 25%.