Little Change In SONIA, 40bp Of Cuts Priced Through Year End

SONIA futures little changed at the open, +1.5 to -0.5, as core global bond futures move away from session highs.

• BoE-dated OIS shows ~6bp of cuts for Sep, ~27bp of cuts through Nov and ~40bp of cuts through Dec, also little changed on the day.
• Brightmine wage data showed pay growth easing to the lowest level seen since March, although the measure still runs comfortably above the BoE’s inflation target, sitting at +4.5%. This continues to complicate the return to 2% inflation.
• Little of note on the UK data calendar during the remainder of the session, which will leave focus on the wider macro picture and risk backdrop.