Euro$ interest rate futures remain on the defensive
Euro$ interest rate futures remain on the defensive with the short-dated rate contracts lower across the strip, as the risk aversion bid dries up with some semblance of calm returning to the emerging markets and stocks. The September 2018 contract is a half-tick lower near 97.63 (2.37% implied 3-month yield), while the deferred contracts are 2.0-3.5 ticks lower out the curve. Fedspeak remains on holiday for now until analysts get an update from Atlanta dove Bostic on the economic outlook next Monday. Yet the September contract came within a whisker of retesting May 30 (Italian election fright) highs of 97.64 before pulling back slightly, well up from 97.555 lows to start the month.