Euro$ interest rate futures zipped higher
Euro$ interest rate futures zipped higher on the pullback in stocks amid concerns about the ability to pass tax reform, along with exactly what it will look like when it comes out the other end of the Congressional boa constrictor. A UBS research piece in fact reportedly expressed doubt that any significant tax cuts will be legislated near-term heading into mid-terms, facing reelection risks, the debt ceiling again and fiscal conservativism. Fedspeak from George and Fischer has been predictably hawkish today on the margin, which set up the short-dated rate contracts for the bounce from lows. The December 2017 contract is 1.5-ticks firmer near 98.515 (1.485% implied 3-month yield), while the deferreds are 1.5 higher in the fronts and as much as 4-ticks lower in the deeper deferreds as the rate curve flattens (implied yields steepen).