Commenting on the ongoing drama involving arrested American Pastor, Andrew Brunson, who is currently under house arrest in Turkey after being imprisoned for almost two years on charges of participation in a 2016 coup attempt, Trump’s attorney Jay Sekulow tweeted overnight that “We won’t stop fighting until the pastor is safely home in America”

And perhaps sensing that the Erdogan administration would need to cave on this matter, if it hopes to stop angering Donald Trump, the market pushed the Turkish Lira higher in recent days, expecting some normalization in diplomatic relations between the two nations.

Well, it was not meant to be, because moments ago a Turkish court rejected an appeal Brunson’s lawyers to be released and for his travel ban to be lifted, Turkey’s Sabah newspaper reported.

As a result Brunson will remain under house arrest and under a travel ban, and Trump will continue threatening with imposing imminent sanctions on Ankara until one day he finally does.

And in separate news, overnight the Turkish central bank highest its 2018 inflation estimate by more than 50% as the Turkish economy implodes, and now expects 13.4% inflation vs 8.4% previously.

As a result of the latest Brunson news, and coupled with the country’s soaring inflation, not only has the lira tumbled, dropping as low as 4.92…

… but the Turkish 10Y yield has spiked 45bps to a new all time high of 18.86%.