After a few sessions with a modicum....>

TURKISH LIRA: After a few sessions with a modicum of stability, spot TRY is

sharply underperforming again, with USD/TRY trading higher by just shy of 5% at

writing. This follows the sharp drawdown in TRY overnight swap rates (last down

at 41% after trading north of 1000% at some points this week), effectively

slashing the cost of initiating new shorts and liquidating long TRY positions.

Short-end TRY vols remain extremely elevated, with overnight USD/TRY vols

touching 202 vol points, easily the highest on record today. These measures are

likely to hold close to recent highs ahead of the weekend's local elections - a

key test of popularity for Turkey's Erdogan.

-Ahead of the NY crossover however, other EMFX is slightly more stable, with ZAR

only modestly lower and RUB, MXN and others standing their ground. This may be

(as Bloomberg points out this morning) a result of fund's VAR measures allowing

for greater ex-Turkey EMFX exposure now that they're finally able to unwind

their TRY positions at a reasonable cost.