LONDON- Turkey's dollar-denominated government bonds fell to 3-4 week lows on Monday after U.S. President Donald Trump threatened Ankara with economic devastation if Turkish troops attacked a U.S.-allied Kurdish militia in Syria.
A diplomatic crisis last year, when Trump imposed sanctions on two of Turkish President Tayyip Erdogan's ministers and raised tariffs on Turkish metal exports, helped push the Turkish lira to a record low in August.
The currency was on the slide again on Monday pushing most of Turkey's longer-dated bonds down just over 1 cent in the dollar to their lowest since mid-December.
"Will devastate Turkey economically if they hit Kurds. Create 20 mile safe zone...Likewise, do not want the Kurds to provoke Turkey," Trump wrote on Twitter on Sunday.
(Reporting by Marc Jones) ((marc.jones@thomsonreuters.com; +44 (0)207 542 9033; Reuters Messaging: marc.jones.thomsonreuters.com@reuters.net Twitter @marcjonesrtrs))
