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Can anybody please help me how to get EUR ATM cap volatilities in bloomberg to calibrate G2++ model.

I want to confirm that i am using VCUB command in bloomberg to get EUR ATM cap volatilities to calibrate gaussian one factor.is it right?.My goal is to calibrate EUR 3m , 5y, 10y and do Monte carlo simulationbut i am getting wired values for EUR 3m after monte carlo.where as if do the same excercise for USD , 3m is fine. The only reason is see EUR cap vol is more volatile than US cap curve. Any inputs are appreciated?.

well, i'm not overly surprised if the one factor model doesn't give a good fit at both long terms and the short end...

only EUR 3m is giving me spikes after Monte carlo.is this because of Too high Cap volatilities ?.because if i compare EUR ATM cap vol for last 10 year , cap vol have increased drastically after 2008.

It has increased, because the rates decreased. If normal vol can be approximated by \sigma * F then in order to have a normal vol at 0.8%-1%, when rates are at 1% you need to have lognormal vol at 100%. That is as simple as that. There must be something wrong either with your calibration or simulation scheme.

Can anybody , please help me how to calculate Market forward rate i.e. f^M(0,T) in G2++ interest rate model Thanks in advance