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STIR: Markets Move Towards Pricing 60bp Of BoE Cuts Through '25

STIR
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Dovish BoE repricing extends further in the wake of the U.S. CPI data. 

  • BoE-dated OIS shows 57.5bp of cuts through year-end, over 20bp more dovish on the day.
  • Markets near enough fully discount the next 25bp cut come the end of the March meeting, with 36bp of easing priced through May. We continue to look for cuts in February and May at this stage.
  • SONIA futures now 3.0-20.0 higher on the day, building on the recovery from yesterday’s cycle lows in many contracts.
  • Comments from BoE dovish dissenter Taylor eyed (16:30).
  • Participants will be attuned to any comments pertaining to recent hawkish market adjustments (although a fair amount of those moves have been unwound today) and this morning’s softer-than-expected CPI reading (which was largely driven by volatile components).

BoE Meeting

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Dovish BoE repricing extends further in the wake of the U.S. CPI data. 

  • BoE-dated OIS shows 57.5bp of cuts through year-end, over 20bp more dovish on the day.
  • Markets near enough fully discount the next 25bp cut come the end of the March meeting, with 36bp of easing priced through May. We continue to look for cuts in February and May at this stage.
  • SONIA futures now 3.0-20.0 higher on the day, building on the recovery from yesterday’s cycle lows in many contracts.
  • Comments from BoE dovish dissenter Taylor eyed (16:30).
  • Participants will be attuned to any comments pertaining to recent hawkish market adjustments (although a fair amount of those moves have been unwound today) and this morning’s softer-than-expected CPI reading (which was largely driven by volatile components).

BoE Meeting

Keep reading...Show less