MNI China Daily Summary: Thursday, December 12

RPT-MNI BOC WATCH: More Gradual Approach Seen After 50BP Cut

MNI BRIEF: Beijing To Protect Firms From U.S. Bill - MOFCOM

MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI: SWEDEN FINAL NOV CPIF +1.8% Y/Y

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Dovish Push In BoE Pricing Post-U.S. PPI

STIR

As noted elsewhere, softer-than-expected U.S. PPI data and related perceptions surrounding the upcoming U.S. PCE print dominate recent trade, promoting receiver-side flows in core global STIR markets.

  • SONIA futures are flat to +10.5 through the blues, with the front of the reds leading the bid. Contracts generally sit a little off post-data bests.
  • Meanwhile, BoE-dated OIS is 0.5-9.0bp lower on the day through ’24 MPC meetings.
  • ~130bp of cuts are priced through ’24 (a ~3bp dovish move vs. pre-U.S. PPI readings), ~3bp off dovish session extremes, which also represented the most dovish levels printed this week.
  • Further forward ~22.5bp of cuts are now priced through the May ’24 MPC.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Feb-245.200+1.2
Mar-245.133-5.5
May-244.965-22.3
Jun-244.761-42.7
Aug-244.508-68.0
Sep-244.281-90.7
Nov-244.055-113.3
Dec-243.891-129.7
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
HomepageBank Of England (BOE) Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
HomepageBank Of England (BOE) Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.