Free Trial

It has been a flip flop day for STIR...>

STIR FUTURES
STIR FUTURES: It has been a flip flop day for STIR futures. After beginning the
day on the front foot following the FX flash crash, STIR futures pared some of
their gains in the middle of the European morning. However, a poor ISM
manufacturing has been the trigger for another springboard higher.
- The biggest moves of the day have been seen across the Eurodollar strip with
Reds, Greens and Blues 9-11.5 ticks higher on the day. Some Green and Blue
contracts are now more than 25 ticks higher since Christmas. The spread between
H9-M0 is now -33.5bp.
- Short sterling futures had been lower earlier today but the whole strip has
since shifted higher. Whites are 2-2.5 ticks higher, Reds and Greens 2.5-3.5
ticks higher and Blues 3.5-4 ticks higher. Assuming that 3m LIBOR stays close to
current levels, is is almost two years until a hike is fully priced in the short
sterling market now.
- In contrast the Euribor strip is largely unchanged with Whites, Reds and
Greens all within 0.5 ticks of yesterday's close. Blues are 0.5-1.5 ticks higher
on the day.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.