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GBP Markets Stabilise Alongside Gilts

STIR

UK STIR markets move off hawkish session extremes as gilts tick away from worst levels of the day. That leaves SONIA futures flat to -6.0 through the blues, with the late reds and greens under the most pressure. Elsewhere, BoE-dated OIS shows ~84bp of cuts for ’24, operating either side of 85bp thus far. Offshore and cross-market matters have been more impactful re: price action, with local focus set to fall on comments from BoE MPC hawk Mann (15:00 London).

BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Mar-245.182-0.7
May-245.103-8.7
Jun-244.996-19.3
Aug-244.835-35.5
Sep-244.688-50.1
Nov-244.490-69.9
Dec-244.349-84.0
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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