Free Trial

BoE Pricing Unwinds Yesterday’s Gains, Terminal Rate Pricing Hovers Around 6.40% Once Again

STIR

BoE-dated OIS has come in today, more than reversing yesterday’s (eventual) uptick, but failing to challenge Tuesday’s dovish extremes, last showing 1-10bp softer. BoE Governor Bailey’s hat tip towards early signs of labour market loosening will have done receiver-side flows no harm, although the Governor continued to provide plenty of caution re: the degree of wage growth on display at present (while holding off on giving definitive steer on the trajectory of any future rate rises), which would have limited moves lower.

  • Pricing for the August MPC meeting shows circa 46bp of tightening, while terminal policy rate pricing has regained the 6.40% level after showing below this morning.
  • U.S. CPI presents the immediate tier 1 risk event for the space, with the domestic docket limited for the remainder of the day.
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.