Free Trial

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

SONIA
SONIA: The front end of the Sonia curve is marginally flatter in early Tuesday
morning trade compared to Monday's close as markets react to overnight sell-off
in US Dollar and digest the ramifications of the DUP scuppering the possible
Brexit agreement yesterday. On a brighter note though BRC like-for-like sales
rose 0.6% in Nov, thanks to increase in food purchases. Looking ahead key UK
service PMI is released at 0930GMT with consensus seeing a slip to 55.0 in Nov
from 55.6 in Oct. MNI PINCH calculate a 51% chance of a rate hike in May 2018 &
see following levels in the short end of the Sonia curve:-
* 6-mth -0.1bp at 0.506%
* 9-mth -0.2bp at 0.547%
* 12-mth -0.3bp at 0.588%
* 15-mth -0.4bp at 0.623%
* 18-mth -0.4bp at 0.655%
* 21-mth -0.5bp at 0.685%
* 2-yr -0.5bp at 0.714%
* 3-yr -0.6bp at 0.811%

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.