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Light Twist Steepening On SONIA Strip

STIR

The modest tick higher in Bunds and Tsys on the back of the previously covered comments from BoJ Governor Ueda (reiterating the Bank’s patience re: its easing stance and willingness to deploy deeper easing if needed) helps SONIA futures off pre-gilt trade lows, but moves are limited.

  • That leaves the contracts running +0.5 to -1.5 through the blues with a light twist steepening bias seen on the strip.
  • Local data saw retail sales for August provide a modest downside miss.
  • A quick reminder that BoE Governor Bailey did the post-MPC rounds yesterday. The early hours of Thursday evening saw Bailey point to expectations re: another notable drop in October’s CPI data (due in Nov), while he also underscored the need to stay the course in the fight against inflation. Bailey also chose to refrain from giving an opinion on the next move in interest rates.
  • Flash PMIs headline the domestic docket today.
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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