SONIA Futures Off Yesterday's Highs Alongside Core Global Bonds

SONIA futures are a touch lower to start the day, with core global bonds sitting comfortably below levels seen at the time of yesterday’s SONIA settlement window.

• Contracts run 0.25-3.5 lower through the blues.
• BoE-dated OIS firms a touch in sync, showing little changed to ~2.5bp higher across ’24 MPC contracts.
• The pullback from yesterday’s high in core global FI markets helps take the edge off of yesterday afternoon’s receiver-driven move, leaving ~123bp of cuts priced for ’24 on the whole, still comfortably off recent dovish extremes.
• Overnight we saw softer-than-expected BRC like-for-like sales data, while wider local news flow continues to be dominated by political matters.
• Elsewhere, Barclaycard spending data cooled, although the credit provider linked part of this move to the downtick in inflation.
• There is little to note on the domestic data docket today, although the UK long end will be interested in dynamics surrounding the latest round of gilt supply from the DMO.