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

US TSYS SUMMARY: US Treasuries are trading modestly lower curve bear flattening

as short-end comes under most selling pressure on EM currency stabilisation and

upbeat Eurozone/German data. 10-yr yield is 1.6bp higher at 2.8949% with 5s/30s

and 10/30s 1bp and 0.6bp flatter respectively.

- Turkish Lira has bounced back by around 5% Tuesday as emerging markets remain

steady while Italy BTP yields have fallen on hope of that the 2019 budget is

acceptable to the EU. Eurozone flash Q2 GDP came in at 0.4% q/q vs estimate of

0.3% q/q, while German ZEW surprisingly rose to 72.6 from 72.4.

- Turkish President said that the country should boycott US electronic goods,

and the Foreign Minister said that a US consulate would be visiting US Pastor

Brunson today.

- US Tsys were steady but slightly lower during Asia and showed little reaction

to soft China fixed investment, retail sales and industry output data. Then

slipped lower on cross over to London session as Lira bounced off lows.

- Eurodollar futures are lower led by 4 tick decline in Sep19 to Mar21

contracts, while 10-yr and 30-yr swap spreads are 0.5bp wider.