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

SONIA
SONIA: The front end of the Sonia curve is marginally flatter so far in early
Wednesday morning trade compared to Tuesday's close, with little direction seen
overnight, however there is a mild risk-on tone to markets. There is only UK
construction PMI data released at 0930GMT, so attention likely to be on US ISM
manufacturing and release of Dec FOMC meeting minutes later, before turning to
US non-farm payrolls on Friday. MNI PINCH calculate a 40% chance of a rate hike
in May 2018 and a 92% chance or a hike in November of this year & see following
levels in short end Sonia:-
* 6-mth +0.3bp at 0.504%
* 9-mth +0.3bp at 0.54%
* 12-mth +0.2bp at 0.576%
* 15-mth +0.1bp at 0.606%
* 18-mth -0.1bp at 0.634%
* 21-mth -0.2bp at 0.662%
* 2-yr -0.3bp at 0.688%
* 3-yr -0.8bp at 0.776%

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