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Holding Richer From German State CPI, National Ahead

US EURODLR FUTURES
  • Eurodollars are trading 2.5-3 ticks richer in the white pack, increasing to as much as 5 ticks in red and green packs in the same spillover seen in Treasuries from weaker than expected German state inflation (national figure released 0800ET).
  • Aside from the front EDZ2, most contracts remain within yesterday’s range.
  • Modestly more inversion on the day: EDM3/Z3 -0.435 at recent levels, EDZ3/Z4 -1.245 close to record lows and from a policy pivot perspective, ED2/6 hovering at -0.81 off lows closer to -1 in mid-Nov [yellow line below].

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