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Positive risk, lower STIR

STIR FUTURES

Broadly lower this morning after confirmation that China would support its equity markets and continued positive headlines about progress in Russia-Ukraine talks.

  • Euribor futures the biggest movers this morning. Whites steepening with the rest of the strip down 4.5-5.5 ticks.
  • SONIA futures generally down 2.5-4.0 ticks across the curve.
  • The Eurodollar strip seeing the smallest moves, perhaps with investors unwilling to add to positions ahead of the FOMC meeting later today when rates are expected to be raised 25bp, with around 28bp priced by markets (i.e. 25bp fully priced with around a 10% probability of a 50bp hike).

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