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A big rally today in long-dated Euribor.....>

EURIBOR
EURIBOR: A big rally today in long-dated Euribor futures as EMU periphery
concerns mount. Blue contracts are up 6.5-7.0 ticks, printing 2018 highs and
perhaps showing some scepticism on the sustainability of the ECB hiking cycle.
- The generic ER15 contract (now Dec21) is on the verge of breaking out of a
19-month downtrend.
- With the short-end anchored, the curve is flattening fast, with almost all of
the steepening over the course of 2018 (i.e. Dec-18 to Dec-21) being unwound.
- Futures indicating roughly 90bps of rate increases between now and end-21; was
roughly 124bps ten days earlier. A rough guide, but dovish direction is clear.

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