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BoE Pricing Continues To Swing Into Weekend

STIR

As mentioned elsewhere, the weakness in wider core global bond markets, which was seemingly U.S.-led, has allowed BoE-dated OIS to reverse the early dovish moves that came on the back of the softer-than-expected domestic retail sales data.

  • That leaves ’24 MPC contracts within -/+1.5bp of yesterday’s closing levels, with ~108bp of cuts priced through ’24 at present (that was closer to ~120bp earlier today), holding on to the bulk of this week's pull away from dovish extremes in the process.
  • Flash PMI readings headline the domestic docket next week.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Feb-245.200+1.2
Mar-245.167-2.1
May-245.045-14.3
Jun-244.881-30.7
Aug-244.651-53.7
Sep-244.469-71.9
Nov-244.261-92.7
Dec-244.111-107.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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