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

SONIA: The front end of the Sonia curve is modestly bear flattening in early

Tuesday morning trade compared to Monday's close as markets look ahead to key

testimony from new Fed Chair Powell this afternoon. Debate is around how many

interest rate hikes are likely this year. In the UK, focus continues on Brexit

and this time on a draft Brexit treaty that is expected to be published by the

EU on Wednesday that newswire say could cause difficulties for PM May. MNI PINCH

calculate 83.5% chance of a hike in May-18 and a 57.5% chance of a second rate

hike in November. Current levels in short end Sonia:-

* 6-mth +0.3bp at 0.612%

* 9-mth +0.3bp at 0.671%

* 12-mth +0.4bp at 0.727%

* 15-mth +0.2bp at 0.771%

* 18-mth +0.2bp at 0.812%

* 21-mth +0.2bp at 0.85%

* 2-yr +0.1bp at 0.886%

* 3-yr unch at 1%