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

SONIA: The front end of the Sonia curve is modestly steeper in early Wednesday

morning trading compared to Tuesday's close, as UK's NIESR forecast first BoE

rate hike to come in 1st quarter of 2018 and called on the MPC to open up a

debate on policy normalisation. While NIESR also said that growth would pick-up

in 2nd half of 2017. Looking ahead UK construction PMI is released at 0930BST

with consensus seeing a slight drop to 54.0 from 54.8. MNI PINCH now see markets

pricing a 72% chance of a 25bp rate hike in Feb 2018, up from 65% yesterday, and

the following levels in BoE forward dated Sonia:-

- Aug-17 0.3bp higher at 0.234%

- Sep-17 0.2bp lower at 0.245%

- Nov-17 0.1bp lower at 0.322%

- Dec-17 unchanged at 0.330%

- Feb-18 0.1bp higher at 0.392%

- Mar-18 0.4bp higher at 0.385%

- May-18 0.3bp higher at 0.423%

- Jun-18 0.5bp higher at 0.430%