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Goldman Looking For Opportunities to Receive UK OIS Vs. US

STIR

Goldman Sachs write “the sell-off at the front-end in UK following the CPI data was a reminder that the UK curve remains volatile and that positioning is likely long. Given that the BoE may be disinclined to pivot towards an easing bias at the February meeting, this may point to further two-way risk in 2024 pricing.”

  • “The market is pricing more Fed easing than our baseline expectation, we think December ’24 MPC pricing in the UK is still worth receiving vs the US, and any further increase in yields - for example on hawkish BoE communication following inflation data - would be an opportunity to receive.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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