Free Trial

BoE Pricing Little Changed On The Day

STIR

BoE-dated OIS contracts are confined to narrow ranges by recent standards.

  • Warnings from the NIESR thinktank re: a lost 5 years of growth for the UK economy and the previously flagged adjustments lower in some of the lending rates at 3 of the larger UK mortgage issuers haven’t had a meaningful impact.
  • Higher energy prices are helping counter any receiver-side impulses.
  • That leaves the liquid contracts on the strip running at unchanged levels on the day.
  • 21bp of tightening is showing for next month’s meeting.
  • Terminal policy rate pricing sits between 5.75-5.80%.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Sep-235.397+21.4
Nov-235.559+37.6
Dec-235.665+48.2
Feb-245.715+53.2
Mar-245.715+53.2
May-245.692+50.9
Jun-245.645+46.2
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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.