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

STIR

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.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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