Euro$ interest rate futures resumed their descent
Euro$ interest rate futures resumed their descent as stocks have rebalanced higher and the VIX has come back down to earth near 22 after its launch through 50 yesterday. Fed dove Evans said he'd prefer policy to remain on hold through mid-year, unless inflation picks up, though the short-dated rate contracts still remain biased lower. The March 2018 contract is 3-ticks lower near 98.08 (1.92% implied 3-month yield), fast approaching our 98.0 (2%) target, while the deferreds are 0.5-4.0 ticks lower out the curve. 10-year supply is nearby, which could cause a momentary knee-jerk reaction in the rate complex, but is unlikely to leave a lasting mark. SF Fed's Williams will be speaking after the close from Hawaii.