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Stabilised after some short sterling volatility

STIR FUTURES

STIR markets have remained stable over the past couple of hours as the US has come into the office after some strong moves seen in short-sterling this morning.

  • Short sterling Reds/Greens moved around 3-4 ticks lower on the open on the back of the higher-than-expected inflation data. However, with natgas and energy prices moving lower today and despite 10-year inflation breakevens moving higher, short sterling has rebounded and is around 2.5-3.0 ticks higher on the day for Reds/Greens now.
  • The Eurodollar strip is up to 1.5 ticks higher in Whites/Reds, but Greens/Blues are generally lower on the day by 1.0-1.5 ticks.
  • The Euribor strip is marginally higher but only by 0.5-1.0 ticks.

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