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

SONIA
SONIA: The front end of the Sonia curve is modestly flatter in Friday morning
trade compared to Thursday's close despite there being some fresh doubt over the
Irish border issue which could hold up Brexit talks moving onto the next stage.
There is finally some UK data released today, with UK manufacturing PMI for Nov
crossing the wires at 0930GMT. Little further data today so attention again
likely on any comments on Brexit ahead of crucial May/Juncker meeting on Monday.
MNI PINCH calculate a 57% 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 -0.1bp at 0.55%
* 12-mth -0.3bp at 0.593%
* 15-mth -0.5bp at 0.63%
* 18-mth -0.6bp at 0.663%
* 21-mth -0.6bp at 0.694%
* 2-yr -0.6bp at 0.723%
* 3-yr -0.9bp at 0.821%

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