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STIR: Budget Impact Continues In GBP STIRs, 29bp Of Cuts Priced Through Dec

STIR
BulletMarketsFixed Income BulletsForeign Exchange Bullets

Hawkish repricing continues in GBP STIRs this morning, as the impact of the Budget continues to be digested and core global FI markets remain under pressure.

  • BoE-dated OIS shows 21bp of cuts through November, 29bp of cuts through year-end and ~80bp of cuts through June.
  • Contracts are 1.5-22bp less dovish vs. Tuesday’s closing levels (as seen in the table & chart below).
  • SONIA futures flat to -8.0.
  • SFIZ4 through U5 trade to the lowest levels seen since July.
  • Contracts further out the strip respect yesterday’s lows, after some contracts hit the lowest level seen since May.
  • Chancellor Reeves has tried to placate worry surrounding further tax hikes, we will provide further colour in our gilt bullet, due to be published after the open.
  • Fallout from the Budget and cross-market moves are due to dominate on Thursday, with little in the way of notable risk events on the UK calendar.

BoE Meeting

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Hawkish repricing continues in GBP STIRs this morning, as the impact of the Budget continues to be digested and core global FI markets remain under pressure.

  • BoE-dated OIS shows 21bp of cuts through November, 29bp of cuts through year-end and ~80bp of cuts through June.
  • Contracts are 1.5-22bp less dovish vs. Tuesday’s closing levels (as seen in the table & chart below).
  • SONIA futures flat to -8.0.
  • SFIZ4 through U5 trade to the lowest levels seen since July.
  • Contracts further out the strip respect yesterday’s lows, after some contracts hit the lowest level seen since May.
  • Chancellor Reeves has tried to placate worry surrounding further tax hikes, we will provide further colour in our gilt bullet, due to be published after the open.
  • Fallout from the Budget and cross-market moves are due to dominate on Thursday, with little in the way of notable risk events on the UK calendar.

BoE Meeting

Keep reading...Show less