A risk-on tone has seen STIR futures retreat...>

STIR: A risk-on tone has seen STIR futures retreat this morning, with European

PMI data coming in either in line or better than expected.

- The short sterling strip has seen the smallest moves with Whites and Reds

0-0.5 ticks lower while Greens and Blues are generally 1 tick lower. The UK PMI

manufacturing surprised to the upside by almost four points, coming in at 55.1.

Stockpiling ahead of Brexit was the main driver, although was not the only

positive component. However, it is important to note that this survey was

conducted between 12-26 March and pointed to "reduced Brexit uncertainty in the

future" lifting optimism. Some respondents therefore may have assumed that May's

deal would have passed when they submitted their responses. Brexit continues to

dominate with the next round of indicative votes due tonight at 2000BST.

- The Euribor curve has mirrored short sterling for Whites, Reds and Greens this

morning but Blues are down 1.5-2 ticks.

- The Eurodollar strip continues its retracement from last week's highs with the

White part of the curve steepening and the rest of the strip 3-3.5 ticks lower.

US retail sales and the ISM manufacturing will both be closely watched today.