Fresh bout of selling in the........>

US TSYS SUMMARY: Fresh bout of selling in the Turkish Lira in the last hour or

so has led to renewed flight-to-quality bid into US Treasuries. 10-yr yield is

1.5bp lower at 2.8515% with yield curve modestly flatter as short-end lags the

rally in the long-end, 2s/10s curve is 0.6bp flatter.

- US Treasuries were trading pretty flat and little changed from Thursday

closing levels with little seen during Asian session to direct markets despite

comments from Mnuchin that the US could take further economic action against

Turkey if they do not release Pastor Brunson.

- Flight-to-quality bid returned though as Turkish Lira sold off sharply on

little new news, however markets noted that S&P are due to release a rating

update later today and there where unconfirmed reports that German/Turkey talked

about IMF rescue, but later denied. At one point the Lira dropped nearly 50 big

figures to 6.3468 leading to the TYU8 future hitting session high of 120-16.

- However recovery in the Lira to around 6.15 level following the denial saw the

future fall back to 120-13+

- Eurodollars are steady to 2.5 tick higher, strip flatter as blues outperform