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BoE Pricing Incrementally Softer, Familiar Levels Seen

STIR

The prevailing bid in core global FI markets has helped bias BoE-dated OIS a touch softer on the day, although the move has been incremental, with liquid contracts showing little changed to 1bp softer.

  • Terminal policy rate pricing sits a little under 15bp above prevailing levels as a result.
  • Overnight REC/KPMG labour market data revealed that starting salaries and pay for temporary workers saw the slowest increase in two and a half years during September, while a swifter rate of job cuts was also flagged in the survey. This is the latest sign of a cooling domestic labour market.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Nov-235.267+8.0
Dec-235.314+12.7
Feb-245.333+14.6
Mar-245.322+13.5
May-245.280+9.3
Jun-245.224+3.7
Aug-245.145-4.2
Sep-245.040-14.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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