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Pay-side Flows Remain Evident In GBP Markets

STIR

Continued weakness in core global bond markets spills over into BoE-dated OIS, with participants still adjusting to BoE speak from Mann & Haskel as well. Less than 75bp of cuts are now priced for ’24. Pricing for the June ’24 MPC has softened to ~16bp of easing (a little over 60% odds of a 25bp cut by the end of that gathering), with ~30bp of cuts priced through the August ’24 MPC.

BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Mar-245.185-0.4
May-245.117-7.2
Jun-245.030-15.9
Aug-244.886-30.3
Sep-244.753-43.6
Nov-244.576-61.4
Dec-244.446-74.4
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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