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SONIA Still Pricing ~40bp Of BoE Cuts Through Dec

STIR

SONIA futures are little changed.

  • BoE-dated OIS contracts are also steady, showing ~40bp of cuts through year end.
  • Lower tier domestic data will continue to filter out this morning but shouldn’t be market moving.
  • The DMO’s quarterly issuance calendar has already been released and will be of more importance for the long end.
  • European inflation and U.S. PCE data provide the key macro inputs ahead of the weekend.
  • A reminder that the lack of BoE commitment to quickfire follow up easing has limited any dovish moves in GBP STIRs in recent weeks.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Sep-244.910-4.0
Nov-244.691-26.0
Dec-244.553-39.7
Feb-254.355-59.5
Mar-254.216-73.4
May-254.051-89.9
Jun-253.959-99.1
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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