STIR futures took a leg higher as the ECB......>

STIR: STIR futures took a leg higher as the ECB added a sentence confirming that

the ECB are considering the negative side effects of negative rates on the

banking sector.

- As expected the biggest moves have been in the Euribor strip which touched the

highs seen on the day of Draghi's speech. The market is concerned that not only

could tiered deposit rates be introduced, but that tiering could be introduced

along with a cut to the lowest deposit rate below -0.40%.

- Some Euribor contracts have seen retraced a tick or so below these highs but

the strip remains higher on the day. Whites are 0.5-2.5 ticks higher, Reds 3.5-5

ticks higher and Greens and Blues 5-5.5 ticks higher.

- The Eurodollar and short sterling strips have also been dragged higher by 1-3

ticks through Reds, Greens and Blues with Whites seeing smaller moves. The FOMC

Minutes will be closely watched later today while the short sterling strip

remains vulnerable to the outcome of today's EU Summit where the EU response to

May's June 30 Brexit request will be decided.