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BoE Pricing Eases A Little, Mansion House Eyed

STIR

As noted elsewhere, the move lower in BoE-dated OIS has caught the eye today, although there wasn’t much in the way of headline drivers to flag.

  • That leaves BoE-dated OIS pricing running 2-7bp softer on the day, with terminal policy rate pricing last showing around 6.40%, a little above session lows.
  • Standard Chartered have suggested that PM Sunak should raise taxes to aid the BoE’s inflation fight.
  • Participants look ahead to Mansion House addresses from BoE Governor Bailey & Chancellor Hunt later today (see more on that via our latest Gilt Week Ahead piece), as well as the latest batch of domestic labour market data, due tomorrow.
  • A quick reminder that the weekend saw Governor Bailey push back against the idea of moving the 2% inflation target higher.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Aug-235.388+45.8
Sep-235.750+82.0
Nov-236.050+112.0
Dec-236.241+131.1
Feb-246.331+140.1
Mar-246.343+141.3
May-246.317+138.7
Jun-246.268+133.8
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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