SONIA futures are flat to -4.0 through the reds, with some weakness in wider core global FI markets setting the tone ahead of the gilt open.

• BoE-dated OIS firms against this backdrop, but still prices close to 150bp of cuts through ’24.
• Political posturing, along with speculation surrounding fiscal loosening and election timing, continue to do the rounds in the local press.
• Elsewhere, the BRC shop price index held steady at +4.3% Y/Y in Dec. The details of the release noted that “food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas… Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.”
• Final manufacturing PMI data headlines the UK docket today.