Turkish Lira banknotes are seen in this October 10, 2017 picture illustration. REUTERS/Murad Sezer
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Turkish bonds tumbled, pushing 10-year yields to a record high, after President Recep Tayyip Erdogan tightened his grip over the central bank and appointed his son-in-law Berat Albayrak as the nation's chief economic policy maker.Turkey raised interest rates by 500 basis points since April to stem a market rout and the lira is now one of the highest-yielding developing-nation currencies. Still, Erdogan's open distaste for high rates is spooking investors who say the central bank needs to keep real policy rates high to meet the country's external funding needs and prevent the economy from overheating. The yield on 10-year bonds jumped 77 basis points to an all-time high of 17.84 percent, ahead of a government debt auction later in the day that will see the Treasury complete its biggest monthly borrowing plan since 2011 .
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