SONIA Futures Higher As Core Global FI Firms Again

SONIA futures are flat to 4.5bp firmer through the blues, with the blues leading the move higher.

• The bid in core global FI markets seen since yesterday’s gilt settlement window is underpinning.
• BoE-dated OIS is little changed to 3bp softer through ’24 MPC contracts.
• Overnight, the November BRC shop price index eased, registering the lowest level of inflation seen since the summer of ’22 in the process (+4.3% Y/Y). The data collator noted that “shop price inflation eased for the sixth month in a row as retailers compete fiercely to bring prices down for customers ahead of Christmas. Food inflation eased, thanks to lower domestic energy prices reducing overall input costs, particularly for dairy products.”
• On the other side of the equation, BoE Deputy Governor Ramsden said that UK inflation has become increasingly "homegrown," alongside a reiteration of the Bank’s higher for longer mantra.
• Further comments from Ramsden and MPC hawk Haskel will cross today (see more on that here).