September 04, 2024 06:43 GMT
Core Global FI remains Bid, Just Over 40bp Of BoE Cuts Priced Through Year end
STIR
Core global FI markets remained underpinned with oil lower and Asia equities offered in reaction to Tuesday’s wider market moves.
- That leaves SONIA futures flat to +2.0, back towards, but not through, yesterday’s highs.
- BoE-dated OIS little changed to 2bp more dovish vs. closing levels, showing ~4.5bp of cuts for this month’s MPC, ~27bp of easing through the Nov meeting and ~41bp of cuts through Dec.
- Final services PMI data headlines the UK calendar today, although that shouldn’t bee too much of a market mover, leaving focus on wider macro headlines/cross-market swings.
| BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
| Sep-24 | 4.906 | -4.4 |
| Nov-24 | 4.684 | -26.7 |
| Dec-24 | 4.539 | -41.1 |
| Feb-25 | 4.333 | -61.7 |
| Mar-25 | 4.189 | -76.1 |
| May-25 | 4.021 | -92.9 |
| Jun-25 | 3.921 | -102.9 |
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