SONIA Futures Steepen

The cheapening seen in core global FI markets since yesterday’s SONIA settlement window applies some modest pressure to most of the strip, with contracts running +0.5 to -5.0 through the blues.

• BoE-dated OIS sit unchanged to 1bp firmer through ’24 meetings, with the move away from recent dovish extremes holding in wider core global STIR markets. ~130bp of cuts are priced for '24.
• Halifax house price data pointed to a resolute end to ’23 for the property market, although there has been some divergence in the broader raft of measures covering the space in recent months.
• Elsewhere, political-based speculation continues to do the rounds after yesterday’s comments from PM Sunak re: the timing of the election.
• Today's local data docket only consists of lower tier releases, which will leave participants to focus on European CPI and U.S. NFP data, as well as the U.S. ISM services print).