After a quiet start to the European session....>

STIR: After a quiet start to the European session today, there has been a pick

up in risk aversion into the afternoon. This deterioration in risk sentiment has

not been helped by a disappointing Empire Manufacturing number in the US.

- The Eurodollar futures strip has shifted higher today. Most of the strip has

shifted 1.5 ticks higher but the U9-U0 sector has seen a slightly bigger 2-2.5

tick move higher.

- The H0-H1 part of the Euribor curve has also shifted higher, by 1-1.5 ticks,

while there has been a steepening of the curve at the Blue end, with Z1-Z2

spread rising 1.5 ticks.

- In the UK, Labour leader Jeremy Corbyn said that he would hold a vote of no

confidence in Theresa May if she did not announce a date for the vote on the

Brexit deal. This would have been a symbolic rather than binding act, but PM May

yielded to this pressure and announced that the vote would be held in the third

week of January. The Short Sterling curve has shifted lower and steepened today.

Whites are 1-1.5 ticks lower, Reds 1.5-3 ticks lower, Greens 3-4.5 ticks lower

and Blues 3.5-5 ticks lower.