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GILTS

Opening calls

MONTH-END EXTENSIONS

Bond extensions

SILVER TECHS

Outlook Remains Bearish

SONIA
SONIA: The front end of the Sonia curve is slightly steeper in early Tuesday
morning trading compared to Monday's close as BRC like-for-like sales for August
rise 1.3% m/m, up from July's +0.9% m/m, helped by strong food sales. Looking
ahead key UK service PMI is released at 0830GMT with consensus seeing a slight
fall to 53.4 in Aug from 53.8 from July. While the political arguments are
likely to rise as parliament returns from summer recess. MNI PINCH now see
markets pricing a 45% 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 higher at 0.271%
- Dec-17 0.3bp higher at 0.275%
- Feb-18 0.3bp higher at 0.325%
- Mar-18 0.7bp higher at 0.319%
- May-18 0.6bp higher at 0.358%
- Jun-18 0.6bp higher at 0.362%
- Aug-18 0.6bp higher at 0.388%