Free Trial

OI Suggests Long Cover Dominated SONIA Positioning During Post-CPI Move

STIR

The combination of Wednesday's weakness on the SONIA strip and OI data points to net long cover as the dominant positioning factor across all packs through the blues.

  • This came as firmer-than-expected domestic CPI data helped to promote a notable extension of the move away from recent dovish extremes re: the pricing of BoE rate cuts (covered in detail elsewhere).
  • Pockets of net short setting were seen (SFIM4, U4, U5, Z5, H7, M7 & U7) were still seen.
  • Note that SFIZ3 was the only contract to settle higher, with the OI swing in that contract pointing to net short cover on the day.
  • The reds saw the largest net swing in pack OI terms.
17-Jan-2416-Jan-24Daily OI ChangeDaily OI Change In Packs
SFIZ3195,440198,158-2,718Whites-3,906
SFIH4198,880208,940-10,060Reds-16,086
SFIM4179,487177,019+2,468Greens-472
SFIU4187,084180,680+6,404Blues-1,888
SFIZ4254,952268,946-13,994
SFIH5152,333153,653-1,320
SFIM5125,308128,365-3,057
SFIU596,68194,396+2,285
SFIZ5107,599105,784+1,815
SFIH686,13387,143-1,010
SFIM655,39056,499-1,109
SFIU641,03541,203-168
SFIZ638,79841,028-2,230
SFIH730,94230,882+60
SFIM717,52517,422+103
SFIU710,65010,471+179
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.