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

SONIA: The front end of the Sonia curve is slightly flatter in early Wednesday

morning trading compared to Tuesday's close as markets trade with a risk-off

tone. While markets also digest comments from US Fed Kaplan that Fed should be

patient with rising rates but start reducing balance sheet asap. Looking ahead

there is little data from the UK or Eurozone, so attention likely on

geopolitical tension in Asia and continued debate on Brexit. MNI PINCH now see

markets pricing a 39% chance of a 25bp rate hike in Feb 2018 and the following

levels in BoE forward dated Sonia:-

- Sep-17 unchanged at 0.215%

- Nov-17 0.1bp lower at 0.268%

- Dec-17 0.3bp lower at 0.267%

- Feb-18 0.9bp lower at 0.310%

- Mar-18 0.9bp lower at 0.304%

- May-18 0.9bp lower at 0.337%

- Jun-18 0.5bp lower at 0.338%

- Aug-18 0.6bp lower at 0.362%