The Turkish yield curve has inverted once again as the 10Y bond yield in the troubled nation crosses 11% and hits record highs for that maturity. 2Y at 11.2% has broken to almost 5 year high yields as the Lira also presses back lower to six-week lows. This comes as the nation mourns the death of a teenager from last year's riots and Erdogan remains defiant ahead of March 30 elections in the face of rising calls from the EU to let the law run its course:

• *TURKEY 10-YR BOND YIELD RISES TO 11.34% RECORD ON CLOSING BASIS
• *ERDOGAN: MAR 30 VOTE MOST IMPORTANT IN TURKEY DEMOCRACY HISTORY
• *ERDOGAN SAYS VIOLENT PROTESTS WON'T BRING DEMOCRACY TO TURKEY
• *EU PARLIAMENT URGES TURKEY NOT TO INTERFERE WITH LEGAL PROBES
• *ERDOGAN RECITES ISLAMIC POEM FOR WHICH HE'D BEEN JAILED IN 1997

So once again political instability is soaring and with it capital outflows and bond yields. No, EM is not fixed!

Those with short memories will remember that Turkey was the center of the universe just 2 months ago as the Emerging Market crisis was exploding with claims that their emergency rate hike save the world... yields are worse now and the currency is rapidly escalating back to pre-rate hike levels - this is not over and Erdogan's indignance is not helping as people take to the streets once again.