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Little Change On Day After Gilt Open

STIR

The modest downtick from early session highs in gilt futures helps the SONIA strip back from best levels. Pre-gilt trade saw a light bid alongside an uptick in wider core global FI markets.

  • That leaves contracts running -0.5 to +2.0 through the blues, although volumes remain light.
  • BoE-dated OIS shows ~124bp cuts through ’24, with the strip little changed vs. yesterday's close.
  • As noted elsewhere, the domestic data docket is empty today, although the latest round of gilt supply is due.
  • Most of the domestic focus remains centred on the political arena and the latest round of mortgage rate cuts from tier 1 names, flagged yesterday.
  • BoE Governor Bailey will appear in front of parliament, with a focus on the recently released Financial Stability Report.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Feb-245.196+0.9
Mar-245.144-4.3
May-245.005-18.2
Jun-244.824-36.3
Aug-244.577-61.0
Sep-244.343-84.4
Nov-244.116-107.1
Dec-243.949-123.8
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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