Short sterling futures have been the biggest...>

STIR: Short sterling futures have been the biggest mover in G3 STIR futures this

morning following the weaker than expected Q2 GDP print. GDP fell -0.2% in the

quarter, but a large proportion of this fall was a bounceback from the

stockpiling seen in Q1 which had boosted GDP to 0.5%Q/Q. There was some focus on

the flat June GDP print, but also mention of the downward revision to the April

print. The White part of the curve bull flattened, rising 1-4 ticks while the

rest of the strip generally moved 4-5 ticks higher.

- Moves in the Eurodollar and Euribor strips have been much more limited. Some

Eurodollar White contracts are 1.5 ticks higher but the rest of the ED and ER

strips are within 1 tick of yesterday's closing levels.