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OI Points To Mix Of SONIA Net Long Setting & Short Cover On Friday

STIR

The combination of Friday's bull flattening of the SONIA futures strip and OI data points to net short cover as the dominant positioning factor in the whites and reds, while modest net long setting was seen in the greens. Rounds of net long setting and short cover seemed to offset in the blues.

  • U.S. data and Fedspeak provided support for SONIA futures in the second half of the day.
  • BoE speak from Pill warned of a need to guard against a false sense of security re: inflation, suggesting that it is some "some way off" until he votes for a rate cut.
  • Pill also noted that restrictive rate levels would still be seen after a rate cut, with a "normal" level for the policy rate sitting some distance below current levels.
  • Fiscal matters will dominate this week, with the Chancellor set to present the Budget on 6 March.
01-Mar-2429-Feb-24Daily OI ChangeDaily OI Change In Packs
SFIZ3188,796187,009+1,787Whites-5,463
SFIH4194,489191,192+3,297Reds-11,987
SFIM4261,147263,014-1,867Greens+2,976
SFIU4208,764217,444-8,680Blues+27
SFIZ4304,039313,249-9,210
SFIH5175,471175,672-201
SFIM5147,342151,462-4,120
SFIU5122,854121,310+1,544
SFIZ5152,099151,141+958
SFIH697,75697,089+667
SFIM665,46263,599+1,863
SFIU645,14045,652-512
SFIZ652,21853,504-1,286
SFIH738,61237,909+703
SFIM727,96527,412+553
SFIU720,39620,339+57
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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