BoE Pricing Softens Again Today

The BoE-dated OIS strip has flattened today, with prices little changed to -5bp in the liquid area of the strip.

• All of the contracts have had at least a look through yesterday’s lows, although some of the breaches were negligible/not sustained.
• Momentum in core global FI markets has helped at the macro level.
• That leaves ~28.2bp of tightening showing for next month’s MPC decision, while terminal policy rate pricing hovers just above 5.85%.
• The latest RTRS poll pointed to a slim majority now looking for one more hike from the BoE in the current cycle (in September), although most noted hawkish risks to their projections.
• Market pricing generally reflects that view.
• Weekend comments from BoE’s Broadbent, out of Jackson Hole, presents the next meaningful domestic point of interest.