Yield-to-maturity on Sovereign Eurobonds and Foreign-currency Sovereign Borrowing in EMEs

Date

2025-6-30

Author

Tuğan, Mustafa

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This paper studies the main determinants of the yield-to-maturity of Emerging Market Economies (EMEs)’ Sovereign Eurobonds and emphasizes that not only the share of total government debt in GDP but also its decomposition into foreign-currency-denominated and domestic-currency-denominated debt matters for the yields to maturity in question. Indeed, while an increase in the ratio of domestic-currency-denominated sovereign debt to GDP has no significant effect on the yield to maturity of EMEs’ Sovereign Eurobonds, an increase in the ratio of foreign-currency-denominated sovereign debt to GDP leads to a significant rise in the yield to maturity of EME Sovereign Eurobonds. This significant effect of the foreign-currencydenominated Sovereign debt on the yield to maturity of EME Sovereign Eurobonds holds even when we control for institutional quality in EMEs.

Subject Keywords

Yield-to-maturity on EMEs’ Sovereign Eurobonds, share of domestic-currency-denominated and foreign-exchange-denominated debt, institutional quality, monetary policy in Türkiye, YPE hazine eurobondları faiz oranları, YPE hazine borçlanmasında döviz ve yerli paranın payları, kurumsal gelişmişlik, Türkiye’de para politikası

URI

https://dergipark.org.tr/tr/pub/metusd/issue/93165/1534545
https://hdl.handle.net/11511/115133

Collections

Department of Economics, Article