President Draghi's comments earlier this.......>

STIR: President Draghi's comments earlier this morning have been the key driver

for STIR markets. Draghi said that if the economic outlook doesn't improve that

additional stimulus would be needed and stated that further interest rate cuts

were still available as part of the ECB's toolbox. Sentiment was further soured

on the release of a poor German ZEW expectations print which fell to its lowest

level since November.

- The Euribor strip has seen a parallel shift higher, with most contracts 5.5-6

ticks higher on the day.

- The Eurodollar strip has also seen a largely parallel shift higher with most

of the strip 3.5-4 ticks higher on the day.  Housing starts are the key release

this morning while the market continues to look ahead to tomorrow's FOMC

meeting.

- The short sterling strip has steepened at the front end with Whites and Reds

1-5.5 ticks higher on the day and the rest of the strip 5-6 ticks higher. The

market continues to look ahead to 18:00BST when the results of the second round

of the Tory leadership contest are due to be announced.