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BoE Pricing Biased Higher, Recent Hawkish Extremes Respected

STIR

Spill over from the FOMC and accompanying dot pot update biases BoE-dated OIS higher, with terminal rate pricing showing between 5.80-5.85%. the recent hawkish extremes are unchallenged.

  • Questions still remain re: the viability of the BoE rate path priced into markets after the recent shunt higher on the back of the latest labour market report.
  • BoE’s Cunliffe speaks today, although that will be on the topic of “central banks and the future of payments,” which will leave focus on the ECB decision and continued post-FOMC adjustments.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Jun-234.733+30.5
Aug-235.078+64.9
Sep-235.350+92.2
Nov-235.574+114.5
Dec-235.710+128.2
Feb-245.769+134.0
Mar-245.745+131.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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