Little Reaction to DMP, Inflation Stickiness Seen

Little reaction in UK FI markets to the BoE DMP survey.

• Futures trade either side of 99.00 post-release, registering fresh session lows in recent trade.
• Gilt yields are 3-6bp higher across the curve, bear flattening seen.
• The pullback from yesterday’s highs has extended a little further.
• Spill over from pressure related to impending EGB supply will have weighed.
• SONIA futures are +0.5 to -5.0.
• BoE-dated OIS shows 60.5bp of ’24 cuts.
• The details of the DMP survey failed to provide any real surprises.
• Still, the survey still points to continued concerns re: inflation stickiness.
• if anything, we see this as reinforcing expectations that cuts may not come as quickly as the market prices currently.