Euro$ interest rate futures are relatively flat
Euro$ interest rate futures are relatively flat heading into the Fed Beige Book report after swaying in the breeze of the of the moves in underlying Treasury yields into the pricing of the record $17.5 B Saudi debt offering. Yields again jerked higher as the large deal was launched, then rolled over lower again. Fedspeak from SF's Williams largely steered clear of policy and Kaplan of Dallas is due in a Q&A session later, followed by NY's Dudley after the close. The December 2016 contract is flat at 99.08 (0.92% implied 3-month yield), compared to lows of 99.06 (0.94%) on Monday, while the deferreds are 1-2 ticks higher out the curve. The ECB also meets tomorrow and any surprise hints about QE extension or tapering ahead could lend to volatility surrounding the decision and press conference.