BoE Pricing Little Changed On The Session, No Real Domestic Drivers to Note

Much like the ECB equivalent, BoE-dated OIS is little changed on the day. Last running flat to 1bp firmer.

• Local headline flow has been dominated by the record (still sub-GBP5bn) usage of the BoE’s short-term repo facility, although this seems to be a function of arbitrage opportunities.
• The impulses out of Japan and softer-than-expected German industrial production data have provided more meaningful headline flow/market moves.
• BoE pricing initially adjusted higher before core global FI stabilised and removed some of the JGB-derived weakness.
• BoE pricing remains within familiar territory after the dovish adjustment seen in recent times, which in itself was mostly facilitated by cross-market moves. November’s dovish extreme re: total BoE cuts for ’24 remains untested.