The cost of insuring exposure to Turkish government debt jumped on Monday to its highest level since the days following the bungled coup on July 15 after Moody's slashed the country's credit rating to 'junk'.

Five-year Turkish credit default swaps (CDS) jumped by as much as 30 basis points to 276 bps from Friday's close of 246 bps before trading at around 268 bps, according to financial data provider Markit.

The average yield spread on Turkish dollar bonds versus Treasuries also jumped, blowing out by 27 bps to 323 bps on JPMorgan's EMBI Global Diversified index.