SONIA Flat To Start, Labour Market Survey Points To Slower Wage Growth And Reduced Hiring

SONIA futures are +1.5 to -0.5 through the blues, with the reds and greens incrementally higher.

• BoE-dated OIS is little changed to 1bp softer through '24 MPC meeting contracts.
• This is despite core global bond futures sitting in line to a touch below levels seen during yesterday’s SONIA future settlement window.
• The latest KPMG-REC labour market survey continued to point to moderating wage growth (3-year low registered in the relevant survey sub-metric in November) and a slowdown in hiring. This may be providing some modest support for SONIA futures/minor dovish impetus for BoE pricing early on today.
• Late Thursday saw Fitch publish a note titled “Major UK Banks Resilient to Economic Backdrop; Underpinned by Strong Buffers. A reminder that this came after RTRS sources flagged “Britain's top financial regulator has asked banks active in the so-called private credit market for details of their exposure to an area which it has identified as a top systemic danger.”
• The BoE-Ipsos inflation attitudes survey headlines today’s limited domestic docket