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BoE Pricing Sees Fresh Dovish Impetus Post-U.S. Data

STIR

Post-data feedthrough from the U.S. injects some fresh dovish pressure into UK STIRs, with the first 25bp BoE cut now more than fully priced come the end of the June ’24 MPC and ~84bp of cuts now priced through ’24 on the whole (November's dovish extremes remain intact when it comes to late '24 pricing).

BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Dec-235.207+1.9
Feb-245.215+2.7
Mar-245.148-4.0
May-245.047-14.1
Jun-244.919-26.9
Aug-244.763-42.5
Sep-244.626-56.2
Nov-244.474-71.4
Dec-244.351-83.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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