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BoE Terminal Rate Pricing Steadies Around 6.30%

STIR

BoE-dated OIS is little changed this morning with terminal rate pricing consolidating just below the 6.30% mark in policy rate terms, while ~46bp of tightening is showing for the Aug meeting.

  • The recent run of UK data and last week’s 50bp hike from the BoE, coupled with a lack of desire to warehouse risk when there is not an overt reversal trigger, is limiting any receiver side flows at present.
  • As noted elsewhere, domestic headline flow has remained focused on the housing market, which has seen steeper discounting in recent times.
  • Looking ahead, BoE Governor Bailey will participate in a 4-way panel with the chiefs of the Fed, ECB & BoJ this afternoon, while BoE’s Pill is set to speak this morning.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Aug-235.387+45.9
Sep-235.771+84.3
Nov-236.042+111.4
Dec-236.191+126.3
Feb-246.221+129.2
Mar-246.215+128.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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