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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 Wednesday
morning trade compared to Tuesday's close taking cue from overnight rally in
Eurodollars as Trumps considers tariffs and restrictions on China trade. In the
UK there is once again a dearth of data, so attention likely to be on PM May's
response to Russia missing deadline on spy poisoning and any update on Brexit
with Barclays saying that only 20% of investors think a transitional deal will
be agreed in March. MNI PINCH calculate 80% chance of a hike in May-18 and a 55%
chance of a second rate hike in November. Current levels in short end Sonia:-
* 6-mth +0.3bp at 0.624%
* 9-mth +0.1bp at 0.68%
* 12-mth +0.2bp at 0.732%
* 15-mth +0.1bp at 0.777%
* 18-mth +0.1bp at 0.819%
* 21-mth +0.1bp at 0.857%
* 2-yr unch at 0.892%
* 3-yr -0.3bp at 1.004%

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