The softest Q/Q Australian CPI print since.....>

STIR: The softest Q/Q Australian CPI print since Q1-2016, missing expectations

by 0.2ppt, ignited a rally in STIR markets through the Asia session.

- A disappointing German IFO print, with the current situation at its lowest

level for two years, along with some poor UK public finance data, helped STIR

markets continue to grind higher through the European morning session.

- The highlight of the North American session will be the Bank of Canada rate

decision with the release of Belgian business confidence also noteworthy.

Belgium is a small and open economy within the euro area so the confidence of

Belgian businesses is often used as a barometer of wider Eurozone sentiment.

- The Eurodollar strip has seen the White part of the curve steepen, with

contracts up 1-3 ticks, Reds risen 3.5-4.5 ticks while the rest of the curve has

shifted 4-4.5 ticks higher.

- Similar moves in short sterling. Whites up 0.5-2.5 ticks, Reds 2.5-3.5 ticks

and the rest of the curve 4 ticks higher.

- The Euribor strip is unch to 0.5 ticks higher for Whites, 0.5-1.5 ticks higher

for Reds and the rest of the strip is 2-3 ticks higher.