Euro$ interest rate futures are mixed
Euro$ interest rate futures are mixed in contrast to the opening declines on stocks following the 4.4% contraction in China exports in December. The shutdown has dented the already emaciated data calendar, but U.S. PPI should remain muted tomorrow at -0.1% headline and +0.1% core, while retail sales may print 0.1% on both headline and ex-auto. Fedspeak resumes tomorrow as well with hawk Mester and dove Kashkari, which should offset one another. The March 2019 contract is 1-tick higher near 97.305 (2.695% implied 3-month yield), while the deferreds range from 0.5 firmer to 1.0 lower out the curve. Given the financial tightening implied by recent stock instability, Fed leadership has emphasized "patience and flexibility," which has helped lift euro$s. That should keep euro$s snugged up closer to January highs near 97.345 than November lows of 97.065.