April 29, 2024 14:11 GMT
Light Dovish Moves In EUR & GBP STIRs On European Data & Commodities
STIR
Bank Of England (BOE) Market NewsHomepageEuropean Central Bank (ECB) Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets
German & Spanish CPI data has supported core global FI markets, with downticks in benchmark crude oil and TTF prices also helping those moves.
- That leaves Euribor futures a little firmer on the day, albeit a little shy of best levels.
- Contracts last +1.5 to +3.5 through the blues.
- ECB-dated OIS has moved in sync with 71.5bp of '24 cuts priced through '24 vs 68.5bp late Friday. Pricing of a June cut moves back towards 90% odds, with today's ECB-speak (from traditional hawks Muller & Wunsch) offering little new.
- GBP STIRs have had little local news to go off, leaving the above drivers at the fore.
- SONIA futures are flat to +3.0, while BoE-dated OIS shows ~45bp of '24 cuts vs. closer to 42bp late on Friday.
ECB Meeting | €STR ECB-Dated OIS (%) | Difference Vs. Current Effective €STR Rate (bp) |
Jun-24 | 3.687 | -22.0 |
Jul-24 | 3.591 | -31.6 |
Sep-24 | 3.413 | -49.4 |
Oct-24 | 3.332 | -57.6 |
Dec-24 | 3.192 | -71.5 |
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
May-24 | 5.203 | +0.3 |
Jun-24 | 5.111 | -8.9 |
Aug-24 | 4.988 | -21.2 |
Sep-24 | 4.920 | -28.0 |
Nov-24 | 4.818 | -38.2 |
Dec-24 | 4.748 | -45.2 |
181 words