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

SONIA: The front end of the Sonia curve is marginally steeper in early Thursday
morning trade compared to Wednesday's close, as markets react to release of Fed
FOMC minutes last night which confirmed Fed remains on a gradual hike path.
Looking ahead UK service PMI and BoE mortgage approval and lending to
individuals are released at 0930GMT. Consensus is for service PMI to tick higher
to 54.0 from 53.8, but risk is seen to the downside. MNI PINCH calculate a 38%
chance of a rate hike in May 2018 and a 85% chance or a hike in November of this
year & see following levels in short end Sonia:-
* 6-mth +0.2bp at 0.5%
* 9-mth +0.4bp at 0.536%
* 12-mth +0.5bp at 0.568%
* 15-mth +0.7bp at 0.596%
* 18-mth +0.8bp at 0.622%
* 21-mth +0.8bp at 0.647%
* 2-yr +0.9bp at 0.672%
* 3-yr +1.2bp at 0.757%

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