May 22, 2024 14:42 GMT
Hawkish GBP STIR Move Sticks
STIR
GBP STIRs haven’t threatened to retrace their hawkish CPI-driven moves, with several sell-side names removing their call for a June BoE cut in the time since the release.
- SONIA futures haven’t tested recent cycle lows but are as much as 18.5bp softer on the day at typing, a little off session lows.
- BoE-dated OIS shows a mere 2bp of cuts for the June meeting, vs. ~11bp at yesterday’s close.
- Pricing for the August meeting sticks below 50/50 odds of a 25bp cut through that juncture, after nearly fully discounting such a move at yesterday’s close.
- 37bp of easing is priced through year end vs. ~53bp yesterday.
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
Jun-24 | 5.182 | -1.8 |
Aug-24 | 5.087 | -11.3 |
Sep-24 | 5.011 | -18.9 |
Nov-24 | 4.905 | -29.5 |
Dec-24 | 4.829 | -37.1 |
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