SONIA Little Changed To A Touch Firmer To Start

SONIA futures are flat to +1.5 through the blues, with core global bond futures a little above levels seen at the time of yesterday’s SONIA settlement window.

• BoE-dated OIS sits little changed to 2bp softer across '24 contracts, with continued worry surrounding at least pockets of the U.S. regional banking sector helping promote receiver-side flows into yesterday's close.
• ~88bp of cuts are priced through '24.
• Late Tuesday we head that lawmakers have called on the Bank of England to work with the Treasury in order to factor in the scale of losses from quantitative tightening into its decision making on the pace and scales of asset sales.
• We also saw the NIESR suggest that the UK may have slipped into a technical recession at the end of ’23 (not a new idea).
• Earlier today Halifax house price data registered a fourth consecutive M/M rise (+1.3% M/M & +2.5% Y/Y).
• BoE’s Breeden will provide a keynote speech this morning (08:40 London), which provides the highlight of the domestic docket.