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SONIA Markets Little Changed To Start

STIR

Core global bonds initially extend on Friday’s rally before moving away from highs.

  • SONIA futures are -0.5 to +1.5 through the blues as a result.
  • BoE-dated OIS still shows the first 25bp cut come the end of the August ’24 MPC, with ~68bp of cuts showing for ’24 on the whole.
  • Pricing of '24 cuts has not moved meaningfully/sustainably below 60bp in recent weeks.
  • UK weekend headline flow was dominated by political matters.
  • Comments from BoE’s Breeden & Pill headline the UK calendar today.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Mar-245.201+1.2
May-245.160-2.9
Jun-245.072-11.7
Aug-244.924-26.5
Sep-244.800-38.9
Nov-244.636-55.3
Dec-244.510-67.9
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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