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Morgan Stanley Recommend Selling BoE OIS Feb ‘24/Aug ’24 Spread

STIR

Friday saw Morgan Stanley note that “UK money market curve looks too steep, especially cross-market, given few cuts are still priced in for 2024 and the BoE easing cycle is expected to come later than the ECB and Fed.”

  • “We believe that deeper rates cuts should be priced in for 2024, with our economist looking for a first cut in May 2024.”
  • As such, they recommended entering selling the Feb '24/Aug '24 BoE OIS spread at -30bp, targeting a move to -60bp with a stop set at -15bp.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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