Euro$ interest rate futures are moderately firmer
Euro$ interest rate futures are moderately firmer with the downdraft on stocks and drift lower in Treasury yields, despite the mostly firmer rounds of U.S. Philly, claims and LEI data. Fed VC of Supervision Quarles stuck to the topic of alternative rates, as expected, endorsing the SOFR over LIBOR, but said nothing of relevance on the economy or policy, which was amply covered by optimistic Chair Powell earlier this week. The September 2018 contract is flat at 97.535 (2.465% implied 3-month yield), with the deferreds 0.5-2.0 ticks firmer out the back. The near-term range continues to be defined by 97.56-97.50, with June lows of 97.475 targeted so long as "gradual" Fed policy normalization remains on track and not sideswiped by trade/tariff angst.