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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 Tuesday
morning trading compared to Monday's close, as markets come under a little
pressure despite growing concerns over progress of Brexit negotiations. Main
event today will be release of UK public borrowing numbers for July. MNI median
forecast is for PSNBx of Stg0.9bln, however with sharp rise in UK T-bill
issuance lately risk is seen to the upside. MNI PINCH now see markets pricing a
42% chance of a 25bp rate hike in Feb 2018, and the following levels in BoE
forward dated Sonia:-
- Sep-17 unchanged at 0.217%
- Nov-17 0.1bp lower at 0.270%
- Dec-17 unchanged at 0.273%
- Feb-18 0.3bp higher at 0.318%
- Mar-18 0.3bp higher at 0.311%
- May-18 0.6bp higher at 0.356%
- Jun-18 0.6bp higher at 0.357%
- Aug-18 0.5bp higher at 0.384%

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