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

SONIA
SONIA: The front end of the Sonia curve is little changed in early Tuesday
morning trade compared to Monday's close as the wrangling between the UK and EU
over the type of trade deal the UK will be able to agree continues and if it
will be able to include a deal on services as well as trade. There is a dearth
of UK data released today, so attention likely on German IFO and progress of US
Tax bill which is expected to be voted on Wednesday. MNI PINCH calculate a 36.5%
chance of a rate hike in May 2018 & see following levels in short end Sonia:-
* 6-mth +0.1bp at 0.491%
* 9-mth +0.1bp at 0.527%
* 12-mth unch at 0.558%
* 15-mth +0.1bp at 0.585%
* 18-mth +0.1bp at 0.609%
* 21-mth +0.1bp at 0.632%
* 2-yr unch at 0.654%
* 3-yr +0.2bp at 0.732%

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