Free Trial

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 markets react to weekend news that US tax reform
bill has passed the Senate, while The Times reports EU officials saying the
Brexit deal is 90% there. There are still concerns on Irish boarder and role of
ECJ however, so nothing is guaranteed ahead of key May/Junker lunch meeting
today. Markets likely to be volatile today reacting to Brexit headlines crossing
the wires. MNI PINCH calculate a 53% chance of a rate hike in May 2018 & see
following levels in the short end of the Sonia curve:-
* 6-mth +0.2bp at 0.506%
* 9-mth +0.2bp at 0.55%
* 12-mth +0.5bp at 0.594%
* 15-mth +0.8bp at 0.631%
* 18-mth +0.9bp at 0.664%
* 21-mth +1.2bp at 0.695%
* 2-yr +1.4bp at 0.724%
* 3-yr +1.9bp at 0.82%

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.