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

SONIA
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%

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