Wall Street Journal: "Turkey's new year's gift: Record low borrowing costs"

Turkey's recent bonds exports are closely followed by Wall Street Journal. The newspaper which highlighted that Turkey has showed an unbelievable increase in the last year interpreted the recent Eurobond export as a "new year's gift". The strawberry on top of the cake would be Moody's expected increase of grade, according to the newspaper. "Moody's Investors Service is widely expected to award Turkey with a second investment-grade rating this year, which would unleash a flood of cash from foreign investors as the Treasury plans to raise about $8 billion in international debt markets." "Now, the $800 billion Turkish economy's rebalancing in the past year has secured not only an investment-grade status from Fitch Ratings in November but also the 'Central Bank Governor Of The Year' award for Mr. Basci from The Banker, a financial publication, helping to feed an already fiery surge in investor confidence. The proof: a $1,5-billion 10-year bond sale on Tuesday at an all-time low yield of 3,473% amid overwhelming demand. That compares with a similar issuance in January 2011, when Ankara paid 6,35% to investors. What's more, the Treasury's lira-bond sales this week were 25 times oversubscribed, helping cut yields on the benchmark two-year debt to 5,96% on Wednesday," the newspaper said. Turkey's lure for investors is underpinned by improving fundamentals. Inflation slowed to 6,2% in December from a 3,5-year high of 11,1% in April; the current-account deficit narrowed to 6,5% of gross domestic product in October from 10% a year earlier; and 2013 economic growth is expected at more than 3,5% that's set to outpace other emerging market peers such as Mexico, Poland and South Africa, according to International Monetary Fund forecasts.