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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 Thursday morning
trade compared to Wednesday's close as the Times reports that UK/EU negotiators
are close to a breakthrough on the Irish boarder issue which could lead to EU
offering a 2-yr transition deal as early as January. Little data from the UK
today so attention likely on any official comments on progress of Brexit talks,
Eurozone flash CPI and US data this afternoon. MNI PINCH calculate a 59.5%
chance of a rate hike in May 2018 & see following levels in the short end of the
Sonia curve:-
* 6-mth +0.2bp at 0.506%
* 9-mth +0.2bp at 0.553%
* 12-mth +0.2bp at 0.599%
* 15-mth +0.2bp at 0.638%
* 18-mth +0.5bp at 0.673%
* 21-mth +0.5bp at 0.703%
* 2-yr +0.5bp at 0.732%
* 3-yr +0.8bp at 0.832%

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