WEEKLY UPDATE: A very busy.......>

US EURODLR FUTURES: WEEKLY UPDATE: A very busy week for Eurodollar futures with

10 out of the front 16 contracts seeing their highest ever daily volume on

Thursday. If we close at current levels this will have been the fourth biggest

weekly rally of the year, behind the weeks ending Nov 16, Oct 26 and May 25.

- The week started off on a positive note following the announcement that the US

and China had made progress on trade talks. However, optimism on this front fell

following the arrest of Huawei's CFO. And more importantly, we have also seen a

significant repricing of Fed hike expectations and falling US/global growth

expectations. Indeed, a disappointing US NFP report helped underpin front end.

- Looking at the moves in more detail, REDs (EDZ9-EDU0), GREENs (EDZ0-EDU1) and

BLUEs (EDZ1-EDU2) have all moved 13-16bp higher there has been a significant

flattening of the curve for the WHITEs (EDZ8-EDU9).

- Looking ahead, we are due to enter the blackout period for Fed appearances

(midnight Fri through December 20), so next week politics and US economic data

likely to dominate trading. On the data front, we have CPI, retail sales and IP

due for release ahead of the Fed.