It has been a busy morning in European STIR....>

STIR: It has been a busy morning in European STIR markets with higher than

expected German regional CPI data seeing a decent move lower in both the Euribor

strip and short sterling strip. The MNI tracking is implying a 0.90% print for

the national German CPI number today, well above consensus estimates of 0.5%. In

addition to the higher than expected inflation prints, Eurozone, Italian and

Spanish GDP were a tenth higher than expected with French GDP in line with

expectations.

- The Euribor strip is unch to 0.5 ticks lower for Whites, 0.5-1 tick lower for

Reds, 1.5-2 ticks lower for Greens and 2-2.5 ticks lower for Blues.

- The short sterling strip is 0.5-3 ticks lower for Whites with the rest of the

strip 3-4 ticks lower.

- Moves in Eurodollar futures have been more muted as market participants look

ahead to tomorrow's FOMC meeting. In addition this afternoon sees the MNI

Chicago PMI, Conference Board consumer confidence and Case Schiller house price

data on the docket. Whites are unch with the rest of the strip 0.5-1 tick

higher.