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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.
SONIA
Late-2023/2024 Sonia futures have dipped sharply in the past hour but have recovered most of the move. Sep23 and Dec23 implied rates touched the highest levels since early November, with a terminal BoE rate implied above 4.70%.
- Not seeing a particular trigger: with contracts further out the strip also weaker, one factor being eyed is a Bloomberg headline "BOE'S BAILEY: UK FACES RISK OF `SECOND ROUND' INFLATION EFFECTS" just before midday - potentially pointing to expectations of slower rate cuts.
- But Bailey's said that before and it would be a bit of a delayed reaction to strong nominal wage growth data out earlier this morning (one desk cites "capitulation" post-wage data for the sudden if delayed move).
- Pricing for this week's decision still around 56bp.
Sep23 Sonia FutureSource: BBG
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.
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