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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 Tuesday morning trade
compared to Monday's close as markets await key inflation data at 0930GMT with
expectations it will rise above 3.0% y/y. While last night David Davis said MPs
would have a 'take-it-or-leave-it' vote on the final Brexit deal if here is one.
Davis is also reported to have told business leaders that there is a 50/50
chance of a December deal. Markets also looking ahead to comments from BoE
carney from 1000GMT. MNI PINCH calculate a 50% chance of a rate hike in May 2018
& see following levels in the short end of the Sonia curve:-
* 6-mth unch at 0.486%
* 9-mth +0.3bp at 0.527%
* 12-mth +0.3bp at 0.566%
* 15-mth +0.3bp at 0.601%
* 18-mth +0.4bp at 0.629%
* 21-mth +0.5bp at 0.656%
* 2-yr +0.6bp at 0.683%
* 3-yr +0.9bp at 0.772%

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