Free Trial

80bp Of '24 Cuts In Wake Of Dovish BoE Takeaways

STIR

The dovish moves in the BoE vote split and rhetoric see some fresh rate cut premium priced in.

  • GBP STIRs a little off initial knee-jerk extremes.
  • SONIA futures now +1.0 to +15.0 on the day, with the back of the reds leading.
  • BoE-dated OIS moves to price ~80bp of ’24 cuts vs. ~76bp pre decision.
  • 19bp of cuts are priced through the June meeting, equating to ~76% odds of a 25bp cut come the end of that event.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
May-245.138-5.1
Jun-244.999-19.0
Aug-244.825-36.4
Sep-244.690-49.9
Nov-244.523-66.6
Dec-244.385-80.4

119 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The dovish moves in the BoE vote split and rhetoric see some fresh rate cut premium priced in.

  • GBP STIRs a little off initial knee-jerk extremes.
  • SONIA futures now +1.0 to +15.0 on the day, with the back of the reds leading.
  • BoE-dated OIS moves to price ~80bp of ’24 cuts vs. ~76bp pre decision.
  • 19bp of cuts are priced through the June meeting, equating to ~76% odds of a 25bp cut come the end of that event.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
May-245.138-5.1
Jun-244.999-19.0
Aug-244.825-36.4
Sep-244.690-49.9
Nov-244.523-66.6
Dec-244.385-80.4