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Limited Post-CPI Moves In SONIA Strip & BoE OIS Given Details Of Data

STIR

Some light cheapening in core global FI markets alongside slightly firmer than expected UK CPI data created a downdraft for SONIA futures, although contracts are generally off pre-gilt open lows, running flat to 2.5bp cheaper through the blues.

  • We have noted that the modest upside surprise in the domestic CPI data seemed to be driven by adjustments in several transient factors that had driven the downside surprise in the month prior.
  • As such the moves in SONIA are unlikely to be as forceful as they otherwise would be.
  • BoE-dated OIS contracts are little changed to 1.5bp firmer post-data, also off hawkish session extremes.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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