Free Trial

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

SONIA
SONIA: The front end of the Sonia curve is modestly steeper in early Tuesday
morning trade compared to Monday's close despite BRC like-for-like sales
surprisingly contracting 1% in October and are the weakest yearly growth seen
this year as non-food sales were soft. Looking ahead there is only Halifax house
price data released at 0830GMT and little data out from the Eurozone so markets
likely to be thin today. MNI PINCH calculate markets pricing a 42.5% chance of a
rate hike in May 2018 & see following levels in the short end of the Sonia
curve:-
* 6-mth +0.3bp at 0.484%
* 9-mth +0.4bp at 0.516%
* 12-mth +0.1bp at 0.548%
* 15-mth -0.1bp at 0.576%
* 18-mth unch at 0.601%
* 21-mth +0.3bp at 0.624%
* 2-yr -0.2bp at 0.647%
* 3-yr +0.7bp at 0.729%

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.