PMIs Put BoE Pricing On Track To Close At Recent Dovish Extremes

As noted elsewhere, the combination of domestic & Eurozone PMI data has allowed BoE-dated OIS pricing to ease on the session, with the liquid contracts running 3-7bp softer on the day. That leaves 36bp of tightening showing for next week’s meeting, while terminal policy rate pricing operates between 5.85-5.90% after a brief and limited showing below 5.85%, with pricing off dovish session extremes. Still, terminal rate pricing is on track to close at the softest level seen during the pull away from early July hawkish cycle extremes, with the same holding true for pricing covering next week’s meeting.

• The remainder of this week’s local docket presents lower tier data, while next week will bring the release of final PMIs and the BoE decision maker panel data ahead of the BoE policy decision.