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

US TSYS SUMMARY: US Treasuries are trading modestly higher with the yield curve

slightly flatter as the long-end outperforms the short-end on mild risk-off bid

despite rally in Turkish Lira as European equities tick lower after positive

start.

- US treasuries rallied during Asian session as new lows in Chinese stocks

triggered renewed Asian equity weakness and Dollar/Yen remained above

yesterday's close.

- There was some selling seen on cross over to London session as Turkish Lira

suddenly rallied around 7% supported by newswire reports that the country was

doubling tariffs on selected US imports.

- Buyers retuned though on news that a court in Turkey rejected US request to

have Pastor Brunson released from house arrest, although US lawyer said they

would appeal to Turkey's high court. Drop lower in European equities then led to

further bid in Tsys. 10-yr yield last -2.2bp at 2.8768%.

- Eurodollar futures are mixed with EDU8 0.25 tick lower but red, green and blue

contracts between 1 to 2 ticks higher