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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 Friday morning
trade compared to Thursday's close as taking cue from mild move lower in
Eurodollar futures overnight. While BoE Tenreyo said in a BBG interview that
further rate hikes would depend on how the "economy evolves" and is unsure how
CPI will be impacted following Brexit. PM May is expected to meet Tusk later
today, so markets will be eyeing any newswire headlines. MNI PINCH calculate a
48.5% chance of a rate hike in May 2018 & see following levels in the short end
of the Sonia curve:-
* 6-mth -0.1bp at 0.491%
* 9-mth unch at 0.531%
* 12-mth +0.2bp at 0.571%
* 15-mth +0.2bp at 0.606%
* 18-mth +0.2bp at 0.633%
* 21-mth +0.4bp at 0.661%
* 2-yr +0.3bp at 0.685%
* 3-yr +0.5bp at 0.768%

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