May 30, 2024 06:51 GMT
SONIA Futures Little Changed, ~30bp Of ’24 BoE Cuts Priced
STIR
SONIA futures are just off lows, last +1.0 to -0.5. Bunds have also stabilised away from yesterday’s lows.
- BoE-dated OIS is little changed vs. late Wednesday levels, showing 29.5bp of cuts through year end and ~50/50 odds of a cut come the end of the Sep MPC.
- Local headline flow has seen PM Sunak suggest that a vote for the Conservatives is a vote for interest rate cuts.
- Expect political matters to dominate UK headlines up until (and after) the July 4 election.
- The UK calendar is essentially empty today, which will leave focus on headline flow and cross-market matters.
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference Vs. Current Effective SONIA Rate (bp) |
Jun-24 | 5.201 | +0.1 |
Aug-24 | 5.129 | -7.1 |
Sep-24 | 5.072 | -12.8 |
Nov-24 | 4.962 | -23.8 |
Dec-24 | 4.904 | -29.6 |
124 words