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Hawkish BoE Repricing Continues

STIR

GBP STIRs continue to move aggressively, with desks flagging little appetite to counter the latest hawkish repricing given recent P&L pain.

  • SONIA futures last 0.5 to 17.5bp lower, with the reds leading the move.
  • SFIZ4 is now within 2bp of the Nov ’23 low.
  • BoE-dated OIS now prices ~45bp of cuts through year end, with the first 25bp not quite fully discounted through the end of the September MPC.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
May-245.189-0.9
Jun-245.126-7.2
Aug-245.026-17.1
Sep-244.950-24.8
Nov-244.834-36.4
Dec-244.745-45.3
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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