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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 Friday's close as oil and copper prices surge higher
raising risk of higher inflation. While the Resolution Foundation said UK's pay
squeeze will end next year but any meaningful pay rise still to be seen. While
latest Springboard survey shows sharp drop in visits to shopping centres and
high streets over the Christmas period. Looking ahead UK Finance releases latest
mortgage approvals for November. MNI PINCH calculate a 46% chance of a rate hike
in May 2018 & see following levels in short end Sonia:-
* 6-mth +0.3bp at 0.502%
* 9-mth +0.3bp at 0.545%
* 12-mth +0.3bp at 0.582%
* 15-mth +0.4bp at 0.612%
* 18-mth +0.4bp at 0.64%
* 21-mth +0.4bp at 0.667%
* 2-yr +0.4bp at 0.692%
* 3-yr +0.4bp at 0.776%

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