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Strong labour market print may be enough to see SONIA strip open flat

UK DATA
  • A strong labour market print. Wages 1-2 tenths higher than expected for headline/ex-bonus. Payrolled employees grew at 275k, big increase on last month , while unemployment ticked a tenth lower than exp (although that was partly driven by a fall in the participation rate). The only other negative being the employment change number.
  • There may be enough for the SONIA strip to open close to flat (rather than a little higher like the Eurodollar / Euribor strips), but it's not going to see a huge downward move in our view.

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