The SONIA Dec26–Dec27 segment is increasingly trading as a proxy for how persistent the current inflation shock becomes relative to the growth impulse into 2027. Recent price action suggests that the front-end repricing has already done most of the heavy lifting, with the policy path now tightly linked to energy-driven inflation dynamics, while the subsequent year begins to reflect the credibility of eventual normalization.
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FICC: SONIA Positioning for Curve Flattening
- Published:
24 Mar 2026 - Author:
-
Pages:
3 -
The SONIA Dec26–Dec27 segment is increasingly trading as a proxy for how persistent the current inflation shock becomes relative to the growth impulse into 2027. Recent price action suggests that the front-end repricing has already done most of the heavy lifting, with the policy path now tightly linked to energy-driven inflation dynamics, while the subsequent year begins to reflect the credibility of eventual normalization.