Short sterling is 5-7 ticks lower today........>

STIR: Short sterling is 5-7 ticks lower today across Reds, Greens and Blues

(immediately after the vote, Short Sterling was 5-6 ticks higher). Betting

markets are pricing a 90% probability that May survives the no confidence vote

tonight with financial markets taking that as a positive of less uncertainty.

However, we would caution that it is not just whether she wins the vote but the

margin of the win that will be important for financial markets. A narrow win

would likely see Short Sterling retrace its losses and could well move above the

highs of the day. Any more than 80 votes against May would be disappointing for

markets.

- The Eurodollar is also lower across the curve with Reds, Greens and Blues all

down 3.5-4.5 ticks and smaller moves seen in the Whites. Optimism surrounding a

trade deal is helping the market.

- The Euribor curve has steepened today with Reds 1-2 ticks lower, Greens 2-3

ticks lower and Blues 3-3.5 ticks lower. Most of this move has come on the back

of narrowing BTP-Bund spreads following headlines that the Italian budget

deficit would be 2%.