Turkish lira banknotes are seen in this picture illustration taken in Istanbul in this file picture.

London - Turkey's credit default swaps fell to a three-week low on Wednesday while South Africa's debt insurance costs also fell after the Turkish central bank surprised the market with aggressive interest rate hikes.

Turkey's 5-year CDS fell 24 basis points from Tuesday's close to 233 bps, according to Markit.

Turkish sovereign dollar bond yield spreads over US Treasuries tightened 20 bps on the benchmark EMBI Global index to 306 bps.

The CDS for South Africa, which has a monetary policy decision later on Wednesday, fell 15 bps to 206 bps. - Reuters