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SONIA Futures A Little Lower To Start The Week, ~70bp Of '24 BoE Cuts Priced

STIR

SONIA futures are also pressured by the continued Fed repricing, last unchanged to -3.0 through the blues.

  • BoE-dated OIS is little changed to a couple of bp firmer, showing ~70bp of ’24 cuts, with June & Aug '24 MPC pricing in familiar territory.
  • The REC/KPMG labour market report provided the latest signs of a loosening domestic labour market.
  • That, coupled with Bunds stabilsing just above session lows, is limiting the downside in SONIA futures at typing.
  • BoE’s Breeden will speak later today (16:30 London), on the topic of “towards the future of the monetary system.”
  • This week’s domestic highlights include the release of the Bernanke report (Friday), comments from BoE’s Greene (Thursday) and the monthly economic activity data (Friday).
  • Elsewhere, the latest U.S. CPI release (Wednesday) & ECB decision (Thursday) will be eyed.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
May-245.142-5.3
Jun-245.019-17.6
Aug-244.874-32.1
Sep-244.758-43.7
Nov-244.612-58.3
Dec-244.497-69.8
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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