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

STIR
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.

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