There has been some divergence in G3 STIR......>

STIR: There has been some divergence in G3 STIR markets this morning.

- Short sterling futures are lower on the day. The political narrative today has

focused on Hammond's comments that "to say people voted for hard Brexit simply

isn't true". 21 Tory MPs (including Hammond) have sent a letter to PM Boris

Johnson to try to persuade him to reconsider the costs of no deal. The short

sterling strip has seen most White Red and Green contracts down 1.5-3.5 ticks on

the day. Blues are down 0.5-1 tick.

- The Eurodollar strip is higher since yesterday's close but much of the move

occurred during the Asian session while moves in the European morning session

have been fairly muted. Relative to yesterday's close, Whites are 2-4 ticks

higher while the rest of the strip is 3-4.5 ticks higher.

- The Euribor strip has moved higher too, helped by data confirming that the

German economy contracted in Q2. Euribor Whites and Reds are unch to 1 tick

higher, Greens 1.5-2.5 ticks higher while Blues are 3-3.5 ticks higher.