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German PMIs More Than Reverse Dovish Impact Of French Data

STIR

Spill over from firmer-than-expected German PMIs more than counter the impact of the softer-than-expected French services print, leaving SONIA futures -0.25 to 4.0 lower on the day.

  • BoE-dated OIS moves to price in ~33.5bp of cuts through year end, through yesterday’s most hawkish levels and closer to Aprils extremes.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Jun-245.190-1.0
Aug-245.108-9.2
Sep-245.040-16.0
Nov-244.938-26.2
Dec-244.865-33.5
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Spill over from firmer-than-expected German PMIs more than counter the impact of the softer-than-expected French services print, leaving SONIA futures -0.25 to 4.0 lower on the day.

  • BoE-dated OIS moves to price in ~33.5bp of cuts through year end, through yesterday’s most hawkish levels and closer to Aprils extremes.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Jun-245.190-1.0
Aug-245.108-9.2
Sep-245.040-16.0
Nov-244.938-26.2
Dec-244.865-33.5