SONIA Moves Towards Pricing 50bp Of BoE Cuts In '24

As noted elsewhere, recent lows have been broken in many SONIA futures contracts, last running +0.25 to -8.0 through the blues.

• BoE-dated OIS moves to price the shallowest ’24 cutting cycle seen in recent times, briefly indicating 51bp of ’24 cuts vs. 54bp last.
• Regional CPI data out of Germany has driven the move ( presenting upside risks to national core readings due later today), with nothing in the way of UK-specific inputs to note.
• We have seen confirmation that the UK Treasury has appointed Clare Lombardelli to replace outgoing BoE Deputy Governor Ben Broadbent as of July 1^st. Lombardelli was known to be in the running for the vacancy. She is currently the OECD's Chief Economist and G20 Finance Deputy.
• The local calendar is thin for the remainder of the day, leaving focus on German national CPI & U.S. PCE data.