Turkey dollar bond rallies to record high on Fitch upgrade

LONDON Dec 3 (Reuters) - Turkey's sovereign benchmark dollar bond rallied sharply on Thursday, its yield falling to record lows after Fitch raised the country's credit rating two notches to 'BB+'.

Thomson Reuters data showed the yield on the 2030 bond TRGLB30=RR down to 6.215 percent after the announcement, down about 8 bps on the day. Turkish bonds also outperformed the wider emerging bond index 11EMJ, with yield spreads over U.S, Treasuries falling 10 basis points to 232 bps.

The cost of insuring Turkish debt also fell, with five-year credit default swaps down 8 bps versus the Wednesday close to 185.5 bps, according to CMA DataVision.

Turkish stocks jumped 2.5 percent .XU100 and the lira TRY= is up 1.2 percent after the news.

(Reporting by Sujata Rao; editing by Sebastian Tong)

((sujata.rao@thomsonreuters.com; +44 207 542 6176; Reuters Messaging: sujata.rao.reuters.com@reuters.net))