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SONIA Looks To Uptick In Core Bonds

STIR

SONIA futures draw support from the bid in wider core global FI markets seen since yesterday’s close, leaving contracts flat to 5.5bp firmer through the blues, with the reds and greens leading the move.

  • Liquid BoE-dated OIS is little changed to ~5.5bp softer given the moves in wider core global FI markets. The strip prices 24bp of easing come the end of the June ’24 MPC, with ~75bp of cumulative cuts priced through ’24 on the whole.
  • Political headline flow has dominated when it comes to local news, but none of that should be particularly market moving.
  • BoE speak headlines today’s UK docket, see our previous bullet for more on that front.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Dec-235.213+2.6
Feb-245.228+4.1
Mar-245.158-2.9
May-245.054-13.3
Jun-244.947-24.0
Aug-244.824-36.3
Sep-244.691-49.6
Nov-244.547-64.0
Dec-244.432-75.5
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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