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

SONIA
SONIA: The front end of the Sonia curve is modestly steeper in early Monday
morning trading compared to Friday's close, as markets react to the departure of
White House Chief Strategist Steve Bannon. While traders also digest weekend
articles on Brexit negotiations and the likely impact on 2nd round of talks
starting next week. Little UK/Eurozone data release today so markets likely to
be subdued ahead of key Jackson Hole conference towards the end of the week. MNI
PINCH still see markets pricing a 40.5% chance of a 25bp rate hike in Feb 2018,
and the following levels in BoE forward dated Sonia:-
- Sep-17 0.1bp higher at 0.217%
- Nov-17 0.1bp higher at 0.269%
- Dec-17 0.1bp higher at 0.270%
- Feb-18 unchanged at 0.314%
- Mar-18 0.4bp lower at 0.309%
- May-18 unchanged at 0.350%
- Jun-18 0.3bp higher at 0.354%
- Aug-18 0.4bp higher at 0.378%

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