The Euribor strip has gradually shifted.....>

EURIBOR: The Euribor strip has gradually shifted higher with the curve

flattening throughout the week.

- It has been another poor week for European data with the German manufacturing

PMI falling below 50 for the first time since November 2014. The French services

PMI fell further to 47.5 while output growth outside of France and Germany was

the lowest since November 2013. The weak PMI was supplemented by a weak German

IFO which saw the expectations component fall to its lowest level since 2011.

- The ECB came and went without too much market reaction with the opening

statement confirming that risks to the outlook are to the downside, rather than

the "broadly balanced...moving to the downside" wording used last month.

- As well as bring driven higher by domestic economic weakness, the Euribor

futures strip has moved higher in sympathy with other global STIR futures

markets. However, toward the end of the week, Euribor futures appeared to be

retracing from their highs.

- Whites are 0.5 ticks lower to 1 tick higher on the week, Reds  1-2 ticks

higher on the week, Greens 2.5-4.5 ticks higher and Blues 5.5-8 ticks higher.