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SONIA Strip Twist steepens, BoE Terminal Pricing Back Up To 6.25%

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SONIA futures twist steepen ahead of the Gilt open, with core global FI markets back from Thursday’s best levels. That leaves the SONIA contracts running +0.5 to -4.5 through the reds. Meanwhile, BoE-dated OIS firms after the recent, notable pullback from hawkish cycle extremes, leaving terminal BoE policy rate pricing hovering a little above 6.25% as the strip steepens. There hasn’t been much in the way of meaningful local headline flow to digest, with the highlight coming in the form of the OBR providing its opinions on tabled public sector pay increases.

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

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