Free Trial

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

SONIA
SONIA: The front end of the Sonia curve is modestly steeper in early Wednesday
morning trading compared to Tuesday's close, as markets continue to digest
yesterday's inflation data and look ahead to release of UK jobs report and
average weekly earnings data for June at 0830GMT. MNI median forecast is for UK
ILO unemployment to remain at 4.5% and for total earnings to grow at 1.8%
matching May's figure. MNI PINCH now see markets pricing a 42% chance of a 25bp
rate hike in Feb 2018, up from 37% Seen at Tuesday's close, and the following
levels in BoE forward dated Sonia:-
- Sep-17 0.1bp higher at 0.215%
- Nov-17 0.3bp higher at 0.271%
- Dec-17 0.4bp higher at 0.274%
- Feb-18 0.6bp higher at 0.318%
- Mar-18 0.5bp higher at 0.310%
- May-18 0.7bp higher at 0.348%
- Jun-18 0.9bp higher at 0.353%
- Aug-18 0.9bp higher at 0.377%

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.