UK politics have again dominated markets so....>

STIR: UK politics have again dominated markets so far today as Graham Brady has

confirmed that he has received the 48 letters needed to trigger a vote of no

confidence in PM May from the Conservative party.

- After initially rallying on the calling of the no confidence vote, short

sterling fell back. First, on the headline that if May was to lose the vote that

leaving the EU may have to be delayed. Second, as markets began to price in a

greater chance of a May victory, with betting markets now pricing around an 80%

chance of a May victory. Whites and Reds are down 0.5-1 tick on the day with

Blues and Greens largely unchanged.

- The Eurodollar curve has steepened today. Whites are up about 0.5 tick, Reds

up to 1 tick lower and Greens and Blues 1.5-2 ticks lower on the day.

- The Euribor curve has seen smaller moves with Whites completely unchanged on

the day, with Reds, Greens and Blues 0.5 ticks lower.

- In Sweden, a softer than expected CPIF print has seen implied rates fall

across the curve, with implied rates on the M9 and U9 contracts 4bp lower and

implied rates on Reds and Greens up to 8.5bp lower on the day.