VIEW: Goldman Sachs note that "total...........>

STIR: VIEW: Goldman Sachs note that "total reserves in the Euro area increased

sharply this week following the settlement of the latest TLTRO loans. Excess

liquidity stands at just below EUR2.7tn. The two ESTR fixings since the increase

in reserves have been stable, little changed from the average June levels so

far. We had expected ESTR to remain broadly stable, acknowledging excess

liquidity may cause a drift lower in ESTR fixings-given the lack of movement so

far this may end up smaller than the 2-3bp we initially expected. Coupled with

the recent rally, risk-reward in EUR front-end rates is now more

balanced-although ongoing focus on the potential for negative rates in the UK

(and elsewhere) should also limit the extent of any sell off. We continue to

think received 6m6m EUR OIS is a good hedge for sovereign credit spread longs or

curve steepeners."