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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 Monday
morning trade compared to Friday's close as the weekend was once again dominated
by Brexit speculation and Tory infighting. Looking ahead attention will be on UK
service PMI data at 0930GMT with consensus seeing a slip to 54.1 in Jan from
54.2 in Dec, with risk is seen to the down side following soft manufacturing and
construction PMIs. Also today Davis and Barnier meet in London to kick off
Brexit transition talks. MNI PINCH calculate 62% chance of a hike in May 2018.
Current levels in short end Sonia:-
* 6-mth +0.5bp at 0.547%
* 9-mth +0.4bp at 0.599%
* 12-mth unch at 0.655%
* 15-mth +0.1bp at 0.704%
* 18-mth -0.1bp at 0.751%
* 21-mth -0.3bp at 0.794%
* 2-yr -0.4bp at 0.837%
* 3-yr -0.3bp at 0.988%

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