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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 Friday morning trade
compared to Thursday's close as the FT says that Pm May is ready to increase
Stg20bln Brexit bill offer. However the Telegraph says the EU wants an
"all-island" approach when it comes to trade between Northern Ireland and
Ireland. Markets also looking ahead to industrial production, construction
output and trade balance data all released at 0930GMT today. MNI PINCH calculate
a 48.5% chance of a rate hike in May 2018 & see following levels in the short
end of the Sonia curve:-
* 6-mth +0.3bp at 0.483%
* 9-mth +0.6bp at 0.52%
* 12-mth +1bp at 0.559%
* 15-mth +1.1bp at 0.592%
* 18-mth +1.3bp at 0.619%
* 21-mth +0.4bp at 0.635%
* 2-yr +1.5bp at 0.671%
* 3-yr +2.2bp at 0.756%

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