US Treasuries are trading...........>

US TSYS SUMMARY: US Treasuries are trading modestly higher, with he exception of

the 30-yr which is a touch lower, but are off session best levels as markets

react to fluctuations in the Turkish Lira. The belly of the yield curve is

slightly outperforming the wings with 5-yr down 1.5bp to 2.7295% while 10-yr

yields slips 0.7bp to 2.866% vs low of 2.8479%.

- Volatility in the Turkish Lira and other emerging market currencies led to a

flight-to-quality bid in US Treasuries during thin Asia markets that saw 10-yr

Note yield fall to intra-day lows. Turkey central bank adding liquidity and

saying it will take all necessary measures helped stabilise the Lira and pushed

Tsy yields off their lows, just before London traded opened.

- In London trade, there was little in the way of European or UK data for

markets to trade off so attention remained on Turkey and the continued weakness

in Italian BTPs on budget concerns.

- Eurodollar futures are steady to 0.5 tick lower, curve little changed, while

swap spreads and breakevens are steady.