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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%