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Tight Ranges For GBP STIRs, Just Under 55bp Of '24 Cuts Still Priced

STIR
HomepageBank Of England (BOE) Market NewsBulletMarketsFixed Income BulletsForeign Exchange Bullets

GBP STIRs continue to stick to a tight range, sitting a little off hawkish session extremes, with gilts off session lows.

  • SONIA futures are flat to -4.0.
  • Meanwhile, BOE-dated OIS shows ~12.5bp of easing through the June meeting and ~54bp of cuts through year end. ’24 contracts are little changed to ~1bp firmer on the day.
  • Outgoing BoE Deputy Governor Broadbent was relatively non-committal on the monetary policy front earlier today, pointing to the potential for a summer cut. A reminder that he will only vote at one more MPC meeting before his career at the Bank comes to an end.
  • Broader moves in wider core global FI have impacted the space today, although activity has been hampered by the Whit Monday holiday in Europe and a lack of macro news flow.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Jun-245.076-12.4
Aug-244.962-23.9
Sep-244.866-33.4
Nov-244.749-45.2
Dec-244.663-53.7
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GBP STIRs continue to stick to a tight range, sitting a little off hawkish session extremes, with gilts off session lows.

  • SONIA futures are flat to -4.0.
  • Meanwhile, BOE-dated OIS shows ~12.5bp of easing through the June meeting and ~54bp of cuts through year end. ’24 contracts are little changed to ~1bp firmer on the day.
  • Outgoing BoE Deputy Governor Broadbent was relatively non-committal on the monetary policy front earlier today, pointing to the potential for a summer cut. A reminder that he will only vote at one more MPC meeting before his career at the Bank comes to an end.
  • Broader moves in wider core global FI have impacted the space today, although activity has been hampered by the Whit Monday holiday in Europe and a lack of macro news flow.
BoE MeetingSONIA BoE-Dated OIS (%)Difference Vs. Current Effective SONIA Rate (bp)
Jun-245.076-12.4
Aug-244.962-23.9
Sep-244.866-33.4
Nov-244.749-45.2
Dec-244.663-53.7