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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.
STIR
Terminal rate pricing on the BoE-dated OIS strip now shows around the 5.05% mark in BoE policy rate terms, levels not seen Liz Truss was Prime Minister.
- Continued weakness in Gilts and the recent ticks higher in Fed- & ECB-dated OIS will have helped promote the recent trajectory in BoE-dated OIS.
- Elsewhere, this morning’s flash PMI release noted that “strong wage inflation meant that service providers experienced the fastest rise in their cost burdens for three months. Meanwhile, output charges across the private sector economy increased at an historically steep pace in May, although the rate of inflation was the second-lowest since August 2021.” That wage picture will offer little comfort for the BoE.
- Comments from BoE Governor Bailey have started to filter out, as he heads up the latest appearance in front of the Treasury Select Committee, presenting the Bank’s annual report alongside Pill, Tenreyro & Mann.
- Elsewhere, BoE’s Haskel will speak later, although that will be at a conference on the subject of technology-enabled disruption, which probably limits the scope for meaningful policy-based communique.
- UK CPI data is due tomorrow and presents the highlight of this week’s docket. Some worry surrounding that release may have factored into the recent hawkish re-pricing.
| BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
| Jun-23 | 4.640 | +21.3 |
| Aug-23 | 4.823 | +39.5 |
| Sep-23 | 4.936 | +50.8 |
| Nov-23 | 4.981 | +55.3 |
| Dec-23 | 4.983 | +55.5 |
| Feb-24 | 4.946 | +51.8 |
| Mar-24 | 4.87 | +44.2 |
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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.
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