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

SONIA
SONIA: The front end of the Sonia curve is modestly steeper in early Wednesday
morning trade compared to Tuesday's close as UK BRC shop price index remains at
-1 as 2.2% rise in food prices is offset by 1.5% fall in non-food prices. While
house prices rise by 0.2% m/m according to latest Nationwide survey and Brexit
Secretary Davis hints at a compromise on negotiations. Looking ahead UK mfg PMI
is released at 0930GMT with consensus looking for an unchanged reading of 55.9.
MNI PINCH see markets pricing a 89% chance of a 25bp rate hike in Nov 2017 and
following levels in BoE forward dated Sonia:-
* Nov-17 +0.2bp at 0.439%
* Dec-17 +0.2bp at 0.45%
* Feb-18 +0.5bp at 0.547%
* Mar-18 +0.8bp at 0.555%
* May-18 +0.8bp at 0.638%
* Jun-18 +0.8bp at 0.643%
* Aug-18 +1bp at 0.704%
* Sep-18 +1.1bp at 0.714%

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