Short sterling is the big mover in STIR........>

STIR: Short sterling is the big mover in STIR space this morning ahead of this

week's BoE meeting. The strip has flattened with greens/blues up 3.5-4.5 ticks. 

- No significant policy changes are expected from the BoE. Brexit is still the

main focus. In the immediate term attention is fixed on the Supreme Court

ruling. An unfavourable decision would further undermine PM Boris Johnson's

authority. 

- This morning's August CPI print came in weaker than expected (1.7% Y/Y vs 1.9%

survey). 

- Price action in eurodollars has been relatively muted ahead of the FOMC

meeting. Whites/reds are broadly flat/0.5 ticks lower with greens/blues up

1.0-2.5 ticks.

- The Federal Reserve will intervene again in the repo market today to contain

the recent surge in repo rates.

- Elsewhere, the Euribor strip is 0.5-2.0 ticks higher.