Rather than the calm before the storm, it......>

STIR: Rather than the calm before the storm, it has been the calm after the

storm in STIR markets. After last week's Fed-driven and then German

manufacturing PMI driven rallies, STIR markets have taken a breather from moving

higher and have drifted a little lower this morning.

- Short sterling and Euribor futures are down 0.5-2 ticks across the curve. A

better than expected German IFO has helped dim some of the pessimism surrounding

the German and global outlooks but in an interview with MNI, ECB member Hansson

said that QE could be restarted, souring sentiment once again. Short sterling is

likely to be dominated by Brexit headlines today with parliament due to vote on

amendments at 22:00GMT, the debate due to begin at 17:00GMT and the cabinet

discussing next steps at the time of writing.

- The Eurodollar strip is down 0.5-1 tick across the curve. Today's US calendar

is fairly light with the Chicago Fed and Dallas Fed indices the highlights.