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

SONIA
SONIA: The front end of the Sonia curve is slightly steeper in Thursday morning
trade compared to Wednesday's close as the UK government survives latest round
of amendments to the EU Withdrawal Bill, but significant votes are still likely
to come next month. While Manfred Weber, close ally to Merkel said that he was
more confident about UK and EU resolving their differences in Brexit talks after
meeting with PM May and Davis. Looking ahead UK Oct retail sales are released at
0930GMT. MNI PINCH calculate a 47% chance of a rate hike in May 2018 & see
following levels in the short end of the Sonia curve:-
* 6-mth unch at 0.485%
* 9-mth +0.1bp at 0.523%
* 12-mth unch at 0.559%
* 15-mth +0.2bp at 0.593%
* 18-mth +0.2bp at 0.618%
* 21-mth +0.1bp at 0.642%
* 2-yr +0.2bp at 0.666%
* 3-yr +0.2bp at 0.747%

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