There have been some decent moves seen in......>

STIR: There have been some decent moves seen in STIR markets this morning. The

biggest moves have been in short sterling futures following last night's big

defeat for the government in the Brexit vote. Betting markets have increased the

probability that the UK remains in the EU past the March 29 scheduled exit date

and this has been taken positively by the market. The short sterling curve has

steepened, particularly in the Red area with Whites largely unchanged, Reds

2-4.5 ticks lower, Greens 4.5-5.5 ticks lower and Blues 5.5-6.5 ticks lower. UK

core CPI also came in slightly higher than expected, rising 0.1ppt to 1.9%Y/Y.

- Euribor futures have been dragged lower by short sterling, with Whites again

largely unchanged, Reds 1-2 ticks lower and Greens and Blues generally 2 ticks

lower.

- The Eurodollar futures curve has also steepened somewhat in the White area.

The H9 contract is unchanged on the day but Z9 is 3.5 ticks lower. Reds, Greens

and Blues are all generally 3-3.5 ticks lower on the day. The key data releases

for the day include the NAHB housing market index and the Fed's Beige Book.