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Light Dovish Flattening In BoE Pricing Today

STIR

Broader geopolitical worry has applied some dovish flattening to BoE-dated OIS today, with core global FI markets bid for most of the session.

  • That leaves the liquid contracts running little changed to ~4bp softer on the day, which is a little off dovish session extremes.
  • ~9bp of tightening is priced for next month’s MPC, with terminal policy rate pricing residing 17bp above prevailing levels.
  • Local headline flow hasn’t been a needle mover for the STIR space.
  • A quick reminder that BoE MPC member Mann will participate in a panel discussing the topic of ‘What have we learned about Inflation Dynamics?’ The panel discussion will get underway at 21:00 BST.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Nov-235.276+8.9
Dec-235.331+14.4
Feb-245.358+17.0
Mar-245.357+17.0
May-245.314+12.7
Jun-245.265+7.8
Aug-245.188+0.1
Sep-245.093-9.4
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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