BoE's Greene & Bond Weakness Pressure SONIA Futures, Just Over 50bp Of '24 BoE Cuts Priced

SONIA futures are 0.5-8.5 lower through the blues, with the reds leading the sell off.

• Further weakness in core global bond futures late Wednesday/early Thursday and comments from BoE’s Greene weigh.
• BoE-dated OIS shows ~52bp of cuts for ’24, with the first 25bp move no longer fully discounted come the end of the August MPC.
• BoE MPC member Greene spoke with the FT. She stuck to her usual tone, stressing that rates cuts “should still be a way off”, arguing that investors were underestimating the risk that high inflation would linger for longer in Britain than in other advanced economies.
• Still, she pointed to some encouraging developments re: wages and services inflation.
• Note that Greene will speak at 17:30 London, covering “lessons learnt from the last economic crisis.”
• RICS house price data was released overnight, but that won’t be a market mover for STIRs.
• The BoE’s credit conditions survey is due this morning, although the latest ECB decision and U.S. PPI reading are set to garner more attention.