STIR futures have been on the backfoot this....>

STIR: STIR futures have been on the backfoot this morning, particularly short

sterling.

- The short sterling strip has continued its slide, with a steepening in the

White area and most Red, Green and Blue contracts 8-9.5 ticks lower on the day.

The strip is now pretty flat all the way out to five years from now. The moves

this week have largely been due to a no deal Brexit at the end of October being

priced out. Today's moves were also exacerbated by a story in The Times that the

DUP are preparing to shift their red lines (although this has later been

denied).

- The Euribor strip is also down considerably on yesterday with Whites 1.5-3

ticks lower, Reds 4-5 ticks lower, Greens 5-6 ticks lower and Blues 6-8 ticks

lower. This as the market continues to digest yesterday's ECB decision.

- The Eurodollar strip in contrast is only down 1.5-2.5 ticks across the curve.

Michigan confidence and retail sales will be the highlights in the US session

today.