The lira strengthened to 2.246 from over 2.25 against the dollar late on Wednesday, while the 10-year government bond yield dropped to 8.63 percent from 8.75 percent.
Turkey's current account deficit, its main economic weakness, inched up to $2.2 billion in September from a revised $2.15 billion in August, but was below the $2.6 billion forecast in a Reuters poll and well below the $3.4 billion deficit in September last year.
The Istanbul stock index was up 1.28 percent by 0900 GMT, outperforming the broader MSCI emerging markets index , which was flat.
Shares in Avivasa, the joint venture pension unit of British insurer Aviva Plc and Turkey's Sabanci Holding , were up 2.6 percent at 48.25 lira in their first trading session.
Aviva and Sabanci completed the flotation of a 19.7 percent stake in Avivasa on Monday, valuing the firm at 1.68 billion lira ($746 million), in an offering that was almost three times oversubscribed.