After underperforming for much of......>

TURKISH LIRA: After underperforming for much of the European morning, TRY

weakens further as wires report that a delay to Turkey's S-400 missile system

purchase from Russia is not on the agenda - implying that the purchase is very

much still going ahead and may raise tensions further with the US. TRY was

already weaker on the day, underperforming broader EMFX space, as markets eyed

reports that the Turkish authorities are looking to impose a 0.1% tax on FX

sales, a measure the market's taken as a pretty transparent method to steady the

TRY rate.

-Despite today's move in spot, short-end TRY vols have been pulling back but

remain above last week's lows. This is reflected in the pullback in USDTRY

hedging volumes so far Wednesday, with activity falling sharply today.