Free Trial

CORRECT: Familiar BoE Pricing Intact, No Impact From Latest Local Data

STIR

SONIA futures -0.25 to +2.0 through the blues, while BoE-dated OIS contracts are flat to a couple of bp lower.

  • ~72bp of ’24 cuts are priced, with the first 25bp cut fully discounted come the end of the August MPC.
  • A bid in EGBs will be supporting SONIA markets this morning, drivers outlined in our earlier bullet.
  • Monthly economic activity data did little for UK STIRs, yesterday's labour market data was always going to be more important.
  • A reminder that late on Tuesday we saw BoE Governor Bailey highlight reduced worry re: second-round inflation effects and continued focus on how long rates need to be kept at restrictive levels.
  • The local calendar is empty for the remainder of today, putting increased focus on wider macro risk events and headline flow.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Mar-245.200+1.2
May-245.162-2.6
Jun-245.055-13.3
Aug-244.899-28.9
Sep-244.770-41.8
Nov-244.605-58.3
Dec-244.475-71.3
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
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.