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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 Tuesday
morning trade compared to Monday's close with little direction seen overnight.
The key event today will be release of UK inflation and producer prices at
0930GMT. MNI consensus is for headline CPI to remain at 3.0% y/y and for core
CPI to tick higher to 2.6% y/y. Risks are seen as balanced as any upside seen
from airfares look to be offset by fall in fuel prices and a stronger sterling.
PINCH now calculate 73.5% chance of a hike in May 2018. Current levels in short
end Sonia:-
* 6-mth +0.2bp at 0.573%
* 9-mth -0.1bp at 0.632%
* 12-mth unch at 0.689%
* 15-mth -0.3bp at 0.737%
* 18-mth -0.4bp at 0.781%
* 21-mth -0.4bp at 0.823%
* 2-yr -0.5bp at 0.863%
* 3-yr -0.8bp at 0.998%

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