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Sterling and OIS

UK

Short Sterling strip is off the session high, and still 3-4 ticks short of the record high.

  • Gilts have also been underpinned, on potential negative Rates, but nearer term risk of vaccine roll outs issues.
  • Cable is better bid, but more a USD function given the EURGBP trading at mid range.

Looking at OIS. 10 bps Rate cut fully priced by August.

  • Meeting ------ Rate
  • 02/04/2021 -0.012
  • 03/18/2021 -0.032
  • 05/06/2021 -0.069
  • 06/24/2021 -0.076
  • 08/05/2021 -0.100
  • 09/23/2021 -0.101
  • 11/04/2021 -0.138
  • 12/16/2021 -0.134

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