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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 Tuesday morning
trade compared to Monday's close as the Bank of England FPC says that all UK
banks would be able to handle a 'Disorderly' Brexit in its latest stress test
results. While Ireland boarder issue continues to put uncertainty on Brexit
deadline. Little data from UK today so markets likely to remain subdued until
start of NY session. MNI PINCH calculate a 48% chance of a rate hike in May 2018
& see following levels in the short end of the Sonia curve:-
* 6-mth unch at 0.495%
* 9-mth +0.1bp at 0.533%
* 12-mth +0.2bp at 0.573%
* 15-mth +0.2bp at 0.608%
* 18-mth +0.2bp at 0.637%
* 21-mth +0.3bp at 0.665%
* 2-yr +0.3bp at 0.691%
* 3-yr +0.4bp at 0.776%

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