SONIA Futures Rally Alongside Bonds, 47bp Of ’24 BoE Cuts Priced

BoE-dated OIS sees modest dovish repricing as core global FI markets rally from yesterday’s lows.

• ~11bp of cuts priced for the September meeting, with ~47bp of cuts priced through year end. That compares to ~10bp and ~45bp at yesterday’s close.
• SONIA futures are 0.25-7.0bp firmer, well off Monday’s highs.
• The latest round of labour market surveys provided mixed results, underscoring the difficulties that the BoE faces when it comes to timing further rate cuts.
• The KPMG-REC Report on Jobs showed "below trend" permanent pay growth, whilst permanent jobs on offer fell for a second month.
• Meanwhile, a BBG-Robert Walters Survey pointed to a relatively aggressive increase in permanent professional hiring, which risks reigniting pay growth if it continues.
• The local calendar is limited until next week’s labour market & CPI data, leaving focus on wider market sentiment.