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

SONIA: The front end of the Sonia curve is modestly steeper in early Tuesday
morning trade compared to Monday's close with markets keeping a close eye on
movement in Eurodollars and US Tsys. In Brexit land, Bloomberg report about UK
possibly withholding exit payments if they do not get a deal they want as some
sort of full back option. Looking ahead David Davis speaks in Austria on
regulation and the 'race to the top', so unlikely to get any updates on progress
of possible transitional deal. MNI PINCH now calculate 78% chance of a hike in
May 2018. Current levels in short end Sonia:-
* 6-mth +0.2bp at 0.589%
* 9-mth +0.5bp at 0.652%
* 12-mth +0.5bp at 0.709%
* 15-mth +0.5bp at 0.759%
* 18-mth +0.6bp at 0.805%
* 21-mth +0.7bp at 0.848%
* 2-yr +0.8bp at 0.89%
* 3-yr +1bp at 1.029%

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