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Labour Market Data Promotes Light Twist Steepening Of SONIA Strip, BoE OIS Eases

STIR

Domestic labour market data helps promote a twist steepening of the SONIA strip, supporting the front end, while the longer end of the strip looks to the weakness in wider core global FI markets.

  • Contracts run 3bp richer to 1bp cheaper through the blues as a result, pivoting at the front of the blues, while the reds outperform.
  • Labour market data helps BoE-dated OIS ease by 1-4bp across the liquid contracts, as the strip flattens.
  • The data presented the latest sign of a cooling labour market, although wage growth remains elevated from a historical standpoint.
  • Comments from BoE dove Dhingra headline today’s docket.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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