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

SONIA
SONIA: The front end of the Sonia curve is slightly flatter in early Tuesday
morning trade compared to Monday's close, as markets react to BoE Tenreyro says
expects 2 more rate hikes in 3-years but with productivity risk skewed to the
upside that could change. While the EU has said the UK has to adhere to strict
rules during the transitional period of Brexit. Looking ahead UK Dec CPI is
released at 0930GMT with consensus seeing it tick lower to 3.0% y/y from 3.1%.
MNI PINCH calculate a 43% chance of a rate hike in May 2018. Current levels in
short end Sonia:-
* 6-mth -0.1bp at 0.513%
* 9-mth -0.1bp at 0.561%
* 12-mth -0.1bp at 0.609%
* 15-mth -0.1bp at 0.647%
* 18-mth -0.2bp at 0.681%
* 21-mth -0.3bp at 0.713%
* 2-yr -0.3bp at 0.744%
* 3-yr -0.5bp at 0.843%

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