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

SONIA
SONIA: The front end of the Sonia curve is modestly flatter in early Tuesday
morning trade compared to Monday's close as domestic politics concerns once
again directs markets. A leaked government report shows UK will be worse off
under 3 different Brexit scenarios while there appears to be more calls for PM
May to step down. Looking ahead BoE mortgage approvals and money supply data is
released at 0930GMT, while BoE Carney appears in front of Lords committee to
answer questions on growth, Brexit and CPI target. MNI PINCH calculate 49%
chance of a hike in May 2018. Current levels in short end Sonia:-
* 6-mth -0.4bp at 0.523%
* 9-mth -0.8bp at 0.571%
* 12-mth -1.1bp at 0.622%
* 15-mth -1.2bp at 0.664%
* 18-mth -1.4bp at 0.703%
* 21-mth -1.5bp at 0.741%
* 2-yr -1.6bp at 0.778%
* 3-yr -1.6bp at 0.906%

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