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The front end of the Sonia curve has..........>

SONIA
SONIA: The front end of the Sonia curve has shifted higher in early Wednesday
morning trade compared to Tuesday's close as Hammond plays down rift in cabinet
over Brexit. Looking ahead, BoE Q4 2017 agents summary of business conditions
released at 0930GMT, followed by CBI distributive trades at 1100GMT. While BoE
expected to publish plans for foreign banks operating in the UK after Brexit at
1300GMT and Carney is in front of TSC to discuss financial stability report. MNI
PINCH calculate a 39% chance of a rate hike in May 2018 & see following levels
in short end Sonia:-
* 6-mth +0.4bp at 0.497%
* 9-mth +0.4bp at 0.534%
* 12-mth +0.3bp at 0.567%
* 15-mth +0.4bp at 0.595%
* 18-mth +0.4bp at 0.621%
* 21-mth +0.4bp at 0.646%
* 2-yr +0.5bp at 0.67%
* 3-yr +0.6bp at 0.752%

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