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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 Tuesday
morning trade compared to Monday's close as markets faded some of the
flight-to-quality bid seen late Monday and hope of progress in Brexit
negotiations in Brussels. Little data from the UK today, so attention likely to
be on PM May and ECUO Pres Tusk meeting later today. MNI PINCH now see markets
pricing a 79% chance of a 25bp rate hike in Nov 2017 and following levels in BoE
forward dated Sonia:-
* Nov-17 unch at 0.408%
* Dec-17 +0.2bp at 0.43%
* Feb-18 +0.3bp at 0.524%
* Mar-18 +0.6bp at 0.537%
* May-18 +0.9bp at 0.637%
* Jun-18 +0.9bp at 0.644%
* Aug-18 +1.1bp at 0.704%
* Sep-18 +1bp at 0.708%

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