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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 despite the move higher in Brent crude
yesterday as markets look ahead to key UK inflation data at 0930GMT. Consensus
is for both November CPI and core CPI to remain at 3.0% y/y and 2.7% y/y
respectively and might signal a near term peak. BoE also release mortgage
lending data for Q3 at 0930GMT. MNI PINCH calculate a 44% chance of a rate hike
in May 2018 & see following levels in the short end of the Sonia curve:-
* 6-mth -0.1bp at 0.502%
* 9-mth -0.1bp at 0.538%
* 12-mth -0.1bp at 0.573%
* 15-mth -0.3bp at 0.602%
* 18-mth -0.3bp at 0.63%
* 21-mth -0.2bp at 0.657%
* 2-yr -0.3bp at 0.682%
* 3-yr unch at 0.768%

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