The rhetoric from Central banks remains firmly dovish. Faced with the risk of economic slowdown amid global trade and political tensions, policy-makers have signalled further stimulus is on the cards. Markets are now pricing in rate cuts in the US and Eurozone before the end of the year.
The backdrop was supportive to the Rates complex. Repricing in the short-end of the curve meant activity in STIRs picked up, with Euribor and Euroswiss futures posting their best month to date in 2019.
Fixed Income finished June with Open Interest (OI) of 24.5 million contracts, +3% YOY. Short Sterling futures continued their strong performance and OI remains at record levels once adjusted for seasonality.