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

SONIA
SONIA: The front end of the Sonia curve is steeper in early Monday morning trade
compared to Friday's close as the Times reports that the ONS is set to revise
unit labour costs sharply higher after admitting an error in its release on
Friday. While the challenge to remove PM May seems to have fallen over the
weekend, with continued support being expressed rom the cabinet. Markets likely
to be quiet today with a dearth of UK and EU data and US bond markets closed for
Columbus holiday. MNI PINCH see markets pricing a 85% chance of a 25bp rate hike
in Nov 2017 and following levels in BoE forward dated Sonia:-
* Nov-17 +0.3bp at 0.42%
* Dec-17 +0.5bp at 0.442%
* Feb-18 +0.7bp at 0.537%
* Mar-18 +0.8bp at 0.541%
* May-18 +0.9bp at 0.632%
* Jun-18 +1bp at 0.639%
* Aug-18 +1.5bp at 0.701%
* Sep-18 +2bp at 0.708%

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