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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 Wednesday morning
trade compared to Tuesday's close as markets trade with a risk-off tone
following sharp falls in US stocks overnight. While in the UK the Telegraph
reports another rift in the cabinet with the Brexiteers worried that PM May is
forcing a soft Brexit. Little data from UK and EMU so attention will remain on
Brexit negotiations and if progress can be made by next week's EU Summit. MNI
PINCH calculate a 50.5% chance of a rate hike in May 2018 & see following levels
in the short end of the Sonia curve:-
* 6-mth -0.2bp at 0.505%
* 9-mth -0.4bp at 0.546%
* 12-mth -0.7bp at 0.584%
* 15-mth -0.8bp at 0.617%
* 18-mth -0.9bp at 0.647%
* 21-mth -1.1bp at 0.674%
* 2-yr -1.3bp at 0.7%
* 3-yr -1.7bp at 0.787%

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