/STIR: Off Initial Knee Jerk Extremes As Bailey Starts

Gilts start BoE Governor Bailey’s post-meeting press conference a little above worst levels, with futures -25 (holding below 100.00 after yesterday’s forays above) and yields 2-3bp higher across the curve.

• BoE-dated OIS and SONIA also sit a little off knee jerk hawkish extremes with the former showing ~110bp of cuts through ’24 (~29bp of easing showing through June ’24), while the latter is flat to 7.0bp softer through the blues (late whites under the most pressure).
• The vote split and slightly dovish wording surrounding inflation projections that we flagged earlier helped limit the initial hawkish move in STIRs.