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Light Twist Steepening For SONIA Futures In Pre-Gilt Trade

STIR

SONIA futures see some light twist steepening ahead of the gilt open, running flat to +1.0 mid-way through the reds, then 0.5-2.5 lower beyond there.

  • Core global FI metrics sit cheaper than levels seen around Monday’s SONIA settlement period and gilt market close.
  • BoE-dated OIS sees a similar twist steepening move, with ~9.5bp of tightening showing for November, while terminal policy rate pricing is ~17.5bp above prevailing levels, showing ~70% odds of one further hike in the current cycle, despite the BoE leaving ratesw unchanged last week.
  • The local data docket is empty today, which will likely leave cross-market cues at the fore.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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