May 18, 2023 07:58 GMT
BoE Pricing Little Changed To A Touch Firmer On U.S. Lead
BoE-dated OIS is little changed to a couple of bp firmer further out the liquid part of the strip, although that is more attributable to moves in the U.S. fixed income space late on Wednesday than anything in the way of overt domestic drivers. Terminal BoE policy rate pricing resides in the familiar 4.90-5.00% landing strip, with just under 45bp of tightening from prevailing SONIA levels currently priced, while ~22bp of cuts is priced in between that terminal rate level (seen in September) and the end of the Bank’s Mar ’24 meeting. The previously alluded to raft of BoE rhetoric provides the focus for participants today.
|BoE Meeting||SONIA BoE-Dated OIS (%)||Difference Vs. Current Effective SONIA Rate (bp)|
Source: MNI - Market News/Bloomberg
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