After a busy few days, STIR markets have had...>

STIR: After a busy few days, STIR markets have had a relatively quiet day, in

spite of a number of central bank decisions including the ECB.

- Short sterling is the biggest moving G3 STIR market today, with the strip

trading lower. There has also been a steepening of the curve with Whites/Reds

0.5-1 tick lower, Greens 1.5-2.5 ticks lower and Blues 2.5-3 ticks lower. The

market has continued to digest last night's announcement that PM May has

survived a vote of no confidence from the Conservative party and is more

optimistic that the UK won't leave the EU without a deal.

- The Euribor curve is largely unchanged on the day, despite the ECB meeting

confirming the end of net asset purchases.

- The Eurodollar futures strip has shifted about a tick higher.

- Norwegian FRAs have seen a flattening of the curve, with implied rates rising

by up to 1.5bp for Whites and falling up to 1.5bp for Greens (with the curve

pivoting in the Reds sector). The Norges Bank statement was marginally more

hawkish than expected with a 90% chance of a hike in Jan and expected rate hikes

in 2021 dialled back marginally.