Yesterday's trends in STIR markets have been...>

STIR: Yesterday's trends in STIR markets have been continued with the Eurodollar

strip drifting higher, the short sterling strip drifting lower and the Euribor

strip largely unch. on the day.

- Following yesterday's announcement of a three-step vote to try to temporarily

resolve the UK parliament's Brexit issues, the market is increasingly optimistic

that a Brexit "cliff edge" will be averted in March through a three-month delay

of Brexit until the end of June. This has led to most Red, Green and Blue short

sterling contracts to be 1.5-2 ticks lower on the day.

- Eurodollar Red futures are 2-2.5 ticks higher on the day, Greens 1-1.5 ticks

higher, Blues 0.5-1 tick higher and Whites unch - 2 ticks higher on the day.

Later today, we will see Powell deliver his testimony to the House with December

trade and retail inventories due for release along with pending home sales for

Jan and factory orders/durables for Dec.

- European data has not been top tier this morning with the main headlines

pointing to forecasts of Italian debt. None of the front 16 contracts have moved

more than 2 ticks from their levels of a week ago.