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Mizuho See room For SONIA Z4/Z5 Flatteners To Perform, Outright & Vs. SOFR

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Mizuho write “excluding Greene, most BoE members that have spoken recently have been relatively dovish. That should help markets fade last week’s knee-jerk reaction to the UK wage and CPI data - we still see room for tactical SONIA flatteners (Z4/Z5) to perform, outright or vs SOFR to play macro divergence between the U.S. and the UK.”

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Mizuho write “excluding Greene, most BoE members that have spoken recently have been relatively dovish. That should help markets fade last week’s knee-jerk reaction to the UK wage and CPI data - we still see room for tactical SONIA flatteners (Z4/Z5) to perform, outright or vs SOFR to play macro divergence between the U.S. and the UK.”