SONIA Futures Incrementally Softer To Start

SONIA futures are virtually unchanged through the blues to start the week, with core global bond futures generally at/a little below levels that were observed around the time of Friday’s SONIA settlement window. The strip operates a touch above Monday’s opening lows.

• Local headline flow has seen continued fiscal speculation surrounding the upcoming Budget (although the matters discussed aren’t particularly market moving), while strains within the ruling Conservative Party and a soft Rightmove house price index reading have generated soundbites from elsewhere.
• BoE-dated OIS is flat to 2bp lower across liquid contracts.
• BoE speak headlines the domestic docket on Monday. We will hear from MPC members Mann & Breeden, with both touching on climate-related matters. We would suggest that the topic of Mann’s address (“climate and monetary policy”) means that her comments are likely to be of more interest for financial markets, although her position at the hawkish end of the BoE spectrum is well-defined.
• Tier one domestic data is due through the week, with labour market readings (Tuesday), the inflation data suite (Wednesday) and retail sales (Friday) all incoming (see more on those releases here).