Free Trial

SONIA Futures Tick Lower To Start BoE Day

STIR

SONIA futures are flat to 5.0bp lower through the reds as participants assess the feedthrough from yesterday’s FOMC and fresh (albeit seemingly contained) U.S. banking sector worry, while looking through any month-end related flow in the long end.

  • BoE-dated OIS is 0.5-4.5bp firmer through ’24 contracts, with 110.5bp of cuts priced through '24 ahead of today's BoE decision.
  • Click for our full preview of that event.
  • Domestically, more explicit commentary from Chancellor Hunt re: lower fiscal headroom than was previously envisaged came in the wake of several source reports pointing to as much in recent days.
  • Still Hunt has pointed to his desire to “lighten the tax burden” while stressing it must be done in a “responsible” manner.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Feb-245.200+1.2
Mar-245.175-1.3
May-245.050-13.8
Jun-244.874-31.4
Aug-244.663-52.5
Sep-244.467-72.1
Nov-244.244-94.5
Dec-244.084-110.5
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.