SONIA Strip A Little Flatter, BoE’S Pill To Appear Again

SONIA futures are unchanged to 4bp firmer through the blues, with a light flattening bias apparent, although volumes are typically light at this time of day.

• The likes of benchmark TY and Bund futures operate shy of their respective Asia-Pac bests, in line with/a touch below levels seen around the time of yesterday’s SONIA settlement.
• BoE-dated OIS is little changed to ~1bp softer across liquid contracts.
• Comments from BoE chief economist Pill headline the docket today, although he has spoken on a couple of occasions in recent days, with Monday’s dovish offering keeping the idea of a summer '24 rate cut/current market pricing alive. His most recent offering was a little at odds with Governor Bailey, who pushed back on the need to entertain discussions re: rate cuts, allowing BoE-dated OIS to move off dovish extremes on Wednesday.