STIR markets rallied on the European open......>

STIR: STIR markets rallied on the European open following yday's dovish Fed

statement. Over the past 3/4 hours, there has been very little movement in STIR

markets, with contracts being confined to moves of less than a tick.

- The Eurodollar futures strip saw the biggest moves in Reds, which have moved

3-4.5 ticks higher since yday's close (8.5-9.5 ticks higher since Tues close).

Whites are 1-3.5 ticks higher on the day (3-7.5 ticks higher since Tues close),

Greens 2-2.5 ticks higher (6-7.5 ticks higher since Tues close), Blues 2-3 ticks

higher (5.5-6 ticks higher since Tues close).

- The Short sterling strip has been dragged higher, with Whites 1.5-2 ticks

higher and Reds, Greens and Blues all 2-2.5 ticks higher.

- The Euribor futures strip has also moved higher with Whites and Reds flat to

0.5 ticks higher, Greens 1-2 ticks higher and Blues 2-2.5 ticks higher. This

morning it was confirmed that Italy entered a technical recession in H2 while

French HICP was in line with consensus and Spanish HICP a tenth lower than

expected (in line with yesterday's German HICP). We will receive the

pan-Eurozone flash HICP estimate tomorrow.