SONIA Futures Flat To A Touch Firmer, 55bp Of '24 BoE Cuts Priced

The uptick in core global bonds (possibly a result of London/European reaction to prospects covering Chinese stimulus expectations, as covered earlier) helps underpin SONIA futures this morning, although Bund futures were already a little above levels seen at yesterday’s SONIA settlement window.

• Contracts are flat to +2.0.
• BOE-dated OIS sits little changed to 1bp softer through ’24 contracts, showing 50/50 odds of a June cut and ~55.5bp of easing through year end.
• Former Fed Chair Bernanke will testify in front of the TSC, in light of his review of Bank of England forecasting methods. That shouldn’t be a market mover.
• There is little else of note on the UK calendar, which will leave focus pinned on the U.S. CPI release.