UPDATE 1-Turkey's lira firms, trade deficit narrowing
* Shares steady, Garanti down after lower-than-expected results (Adds trade data, bonds, equities, quotes)
ISTANBUL, July 31 (Reuters) - The Turkish lira firmed to its strongest in one year against a euro-dollar basket on Tuesday as investors bought Turkish bonds ahead of inflation data and a lower-than-expected trade deficit pointed to continued improvement in the external balance.
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