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

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

morning trading compared to Tuesday's close, as markets digest latest Brexit

position paper saying that UK calls for "an end to the direct jurisdiction" of

the ECJ, which some are saying is a compromise by the UK and seen helping the

negotiations to move forward a little. No UK data scheduled today, so attention

likely on ECB President Draghi comments and Eurozone flash PMIs. MNI PINCH now

see markets pricing a 43% chance of a 25bp rate hike in Feb 2018, and the

following levels in BoE forward dated Sonia:-

- Sep-17 0.1bp higher at 0.218%

- Nov-17 0.2bp higher at 0.272%

- Dec-17 0.2bp higher at 0.273%

- Feb-18 0.2bp higher at 0.320%

- Mar-18 0.1bp higher at 0.312%

- May-18 0.1bp higher at 0.358%

- Jun-18 0.3bp higher at 0.361%

- Aug-18 0.3bp higher at 0.388%