STIR futures are on the front foot again.......>

STIR: STIR futures are on the front foot again today with the German

manufacturing PMI falling over 3 points to 44.7, against expectations of a small

move higher. The French services and manufacturing PMIs both also disappointed

while the Eurozone PMI manufacturing showed that the weakness in the Eurozone is

not just confined to its two biggest members.

- The H1 contract and longer dated Euribor contract have reached their highest

levels since 2016 following the disappointing data. Whites are largely unch with

Reds 0.5-1.5 ticks higher on the day with Greens and Blues 2-2.5 ticks higher on

the day.

- The Eurodollar strip has also moved higher with the Z0 contract and all

longer-dated contracts now trading at higher levels than the January highs.

Whites are 1-3.5 ticks higher, Reds 4.5-5.5 ticks higher while Greens and Blues

are 5.5-6 ticks higher on the day. It is a pretty quiet day for the US data

calendar, with the Markit flash PMI the highlight.

- Short sterling futures have also moved higher with most contracts rising to

their highest levels since 2017. The curve has shifted 1.5-2.5 ticks higher.