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MS derivatives analysts note.....>

US EURODLR FUTURES
US EURODLR FUTURES: MS derivatives analysts note rates vol "remains very subdued
relative to equity market volatility" which is "fundamentally due to FOMC
members emphasizing that stock market volatility on its own is not enough to
affect the hiking cycle outlook." That said, MS does NOT see a "substantial and
sustainable repricing of rates vol until the narrative of FOMC participants
shifts with regards to the economic outlook." With the range-bound opinion on
vol, MS likes "limited theta decay and long vega exposure on 10y20y straddles
along with RV plays such as buying 3m5y vs. 3m30y vol on dips."

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