It has been a busy couple of days in STIR......>

STIR: It has been a busy couple of days in STIR futures markets.

- The big movers of the day are Euribor futures which after a fairly strong open

have fallen back through the rest of the morning session following better than

expected French, German and Eurozone flash PMIs. There is relief that the

situation in Europe has not deteriorated further, although we note that despite

the pickup in headline prints the underlying details are still soft. Most of the

strip is down 3.5-4 ticks with some smaller moves seen at the front end.

- The short sterling strip is also lower, mostly by 2-3 ticks, but the real

action was last night. We saw a total of nearly 900k in Short-Sterling options

blocked in upside structures with Dec19 and Mar20 expiries.

- The Eurodollar strip has seen smaller moves and is 0.5-1 ticks lower on the

day. Jackson Hole will be closely watched later today and over the weekend.