SONIA Futures A Little Lower, Just Under 40bp Of '24 BoE Cuts Priced

SONIA futures are flat to -2.5 after Bunds drifted lower in Asia-Pac hours.

• Implied rates in ’24 BoE-dated OIS contracts are also little changed to ~2bp higher, showing 37.5bp of cuts through year end.
• Further forwards, 16bp of cuts are seen through the Sep MPC, with the first 25bp move lower in rates more than fully discounted come the end of the Nov MPC.
• Political matters continue to dominate UK headline flow, although there isn’t much in the way of market moving matters to flag on that front.
• The initial rounds of post-decision ECB rhetoric have come from the hawkish side of the spectrum, generally stressing the need for a gradual approach when it comes to potential further easing.
• The local calendar is very limited into the weekend, which should leave focus on wider headline flow/cross-market spill over and the impending U.S. NFP release.
• Further out. the S&P-KPMG-REC report on jobs will hit in the early hours of Monday morning.