Media reports that the US are ready to take....>

STIR: Media reports that the US are ready to take next steps in the extradition

process for the Huawei CFO set STIR markets on a risk-off footing, particularly

through the Asian session. Although some of the moves higher in STIR markets

have since been retraced, the Eurodollar strip remains higher across the curve.

The White segment of the curve has steepened and risen by 0.5-3 ticks, Reds and

Greens are 3.5-4 ticks higher while Blues are 3-3.5 ticks higher on the day.

- Risk appetite in Europe has not been helped by a very weak German ZEW current

situation print which fell to its lowest level since January 2015. Euribor

Whites are largely unchanged but Reds are 0.5-1 tick higher with Greens and Blue

largely 1.5 ticks higher.

- In the UK, there have been a slew of Brexit headlines, but the market is

showing some signs of Brexit fatigue with little market moves on their releases.

The short sterling strip is largely trading within 0.5 ticks of yesterday's

close. Labour market data was much better than expected with employment and

wages both posting strong prints.