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Flat Start For SONIA After Cross-Market-Driven Dovish Run In Recent Sessions

STIR

Core global bond futures sit in line to a touch below yesterday’s settlement levels, leaving SONIA futures little changed to 1bp softer early on today.

  • Local headline flow has been relatively sparse since yesterday’s close.
  • BoE-dated OIS contracts covering the ’24 MPCs are little changed on the day, showing ~81bp of cuts for ’24 on the whole, with the first 25bp cut essentially fully priced come the end of the June MPC. The dovish repricing seen in recent sessions has largely been driven by external factors/cross-market spill over.
  • The release of the BoE’s FSR headlines the thin local docket today.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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