WEEKLY SUMMARY: There has been a............>

EURIBOR: WEEKLY SUMMARY: There has been a flattening of the Euribor curve this

week, with Whites and Reds selling off 1-2.5 ticks while Greens and Blues have

rallied with Greens 0.5-1.5 ticks higher and Blues 2-3 ticks higher on the week.

- The main drivers of the longer end of the money market curve have been

international, and primarily from the US. Expectations of Fed hikes have fallen

sharply amid the high-profile arrest of the CFO of Huawei possibly exacerbating

US-China tensions, while concerns surrounding the global economy have increased.

- Data in Europe over the past week have been mixed and the Z8-Z9 spread is

12bps, implying that a 10bps deposit rate hike is fully priced in for 2019. The

recovery (and at least stabilisation) in the oil price has helped keep

expectations of a deposit rate hike alive this week, in spite of the decline in

US rate expectations.

- Next week the ECB meets and is expected to announce an end to asset purchases.

MNI sources have revealed that the ECB is also considering changing the language

surrounding the risks to the outlook from "balanced" to "downside", which would

likely see a rally in the short-end of the Euribor curve.