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

SONIA: The front end of the Sonia curve is modestly flatter in early Wednesday
morning trade compared to Tuesday's close despite UK GfK consumer confidence
bouncing to 8-month high of -9 while BRC shop price inflation ticked higher to
-0.5% y/y from -0.6% y/y but below consensus of -0.4% y/y. Some in the market
say Carney's comments yesterday were on the hawkish side as he said attention
will be on more conventional monetary policy in returning CPI to target.
Attention will be on Eurozone flash CPI and US ADP number today. MNI PINCH
calculate 51% chance of a hike in May 2018. Current levels in short end Sonia:-
* 6-mth +0.1bp at 0.528%
* 9-mth -0.1bp at 0.58%
* 12-mth -0.2bp at 0.634%
* 15-mth -0.3bp at 0.676%
* 18-mth -0.4bp at 0.716%
* 21-mth -0.4bp at 0.755%
* 2-yr -0.5bp at 0.792%
* 3-yr -0.9bp at 0.92%

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