Free Trial

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

SONIA: The front end of the Sonia curve is flatter in early Thursday morning
trade compared to Wednesday's close as markets digest last nights FOMC monetary
policy decision and dovish tone of Powell press conference. Attention is also on
the BoE rate decision at noon today. Majority of analysts see BoE leaving policy
on hold, but with some expecting 2 dissenters to vote for immediate rate hike.
Risk is seen that there could be more dissenters. Before that we have Feb retail
sales at 0930GMT. MNI PINCH calculate 90% chance of a hike in May-18 and a 57%
chance of a second rate hike in November. Current levels in short end Sonia:-
* 6-mth +0.1bp at 0.652%
* 9-mth -0.2bp at 0.708%
* 12-mth -0.5bp at 0.761%
* 15-mth -0.6bp at 0.813%
* 18-mth -0.9bp at 0.862%
* 21-mth -1.1bp at 0.907%
* 2-yr -1.1bp at 0.949%
* 3-yr -1.9bp at 1.069%

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.