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

SONIA
SONIA: The front end of the Sonia curve is flatter in early Friday morning trade
compared to Thursday's close as markets react continued concerns over UK PM
May's leadership with confirmation that there are around 30 rebel MPS looking to
oust the PM. Overnight there where comments from BoE Ian McCafferty -- good
reason to think QE unwind could start after "several" rate hikes. Little data
from UK today so attention will be on US non-farm payroll data and any updates
in UK politics. MNI PINCH see markets pricing a 82.5% chance of a 25bp rate hike
in Nov 2017 and following levels in BoE forward dated Sonia:-
* Nov-17 -0.4bp at 0.415%
* Dec-17 -1bp at 0.432%
* Feb-18 -1.2bp at 0.526%
* Mar-18 -1.9bp at 0.528%
* May-18 -2.6bp at 0.614%
* Jun-18 -2.6bp at 0.621%
* Aug-18 -2.9bp at 0.678%
* Sep-18 -2.2bp at 0.684%

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