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

SONIA: The front end of the Sonia curve is modestly steeper in Wednesday morning

trade compared to Tuesday's close as hopes are raised further Brexit talks will

move forward as newswires report that the UK and EU have agreed the divorce

bill. The contentious issue of the Irish boarder though still remains. Looking

ahead BoE net lending and mortgage approval data is release at 0930GMT, while

BoE Carney is due to give a speech at 1400GMT, but unlikely to touch on monetary

policy. MNI PINCH calculate a 61.5% chance of a rate hike in May 2018 & see

following levels in the short end of the Sonia curve:-

* 6-mth +0.1bp at 0.505%

* 9-mth +0.2bp at 0.553%

* 12-mth +0.2bp at 0.599%

* 15-mth unch at 0.638%

* 18-mth +0.1bp at 0.671%

* 21-mth +0.1bp at 0.701%

* 2-yr +0.2bp at 0.73%

* 3-yr +0.4bp at 0.824%