The main talking point for G3 STIR futures.....>

STIR: The main talking point for G3 STIR futures has been the move lower in

short sterling futures this morning with Reds and Greens down up to 9 ticks on

the day. There is no specific driver with some markets contacts pointing to the

move higher recently being overdone and a lack of liquidity. There are also news

stories doing the rounds that Corbyn will not be able to garner enough support

for a no deal-avoiding unity government (but this would likely move the strip

higher rather than lower). There have also been significant moves in gilts

today, particularly at the short-end while the pound has been moving higher. At

the time of writing Whites were unch to 5.5 ticks lower, Reds 6.5-8.5 ticks

lower, Greens 8-9 ticks lower and Blues 6.5-7.5 ticks lower.

- Moves in Euribor and Eurodollar futures have been more muted. The Eurodollar

strip is down 2.5-3.5 ticks across the curuve while the Euribor strip is down

0.5-2.5 ticks with the biggest moves in Euribor Greens.

- The European morning session has been devoid of any significant data, with the

Euro trade surplus a little narrower than expected. US housing starts, building

permits and Michigan confidence are the highlights of the rest of the day.