The cost of insuring Turkish debt against default fell slightly, but stock markets and bank stocks suffered further losses in Thursday afternoon trading.
Erdogan faces his rival, Kemaloglu, in a second round on May 28.
Tradeweb data showed bonds due in 2045 rose about 1 cent to trade at just over 70 cents on the dollar at 1300 GMT.
Longer-dated bonds also fell over the past three losing days, more than 10 cents from Friday’s closing level, and some fell below the 70-cent level that analysts widely consider the default threshold. .
Data from Standard & Poor’s Global Market Intelligence showed credit default swaps, which measure the cost of insuring debt against default, fell eight basis points by mid-afternoon to 684 basis points.
It had risen to 696 basis points earlier in the day, from around 480 before the election.
Turkey’s main banking stock index closed down 3.64%, while the overall stock index fell 3.34% at the close of trading.
The lira fell to 19.7975 against the dollar, close to its all-time low of 19.80, which it recorded in March.
On the other hand, central bank data showed that foreign investors reduced their exposure to local stocks and bonds ahead of the election, with their holdings of bonds down by $31.3 million and their stocks by $135.1 million in the week ending May 12.
Data from Turkey’s central bank also showed net international reserves fell to their lowest level in more than 21 years at $2.33 billion in the week ending May 12, as demand for foreign currency rose before the elections.
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