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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 Friday morning trade
compared to Thursday's close as the first phase of the Brexit deal has been
agreed and negotiations are now likely to move onto a transitional and trade
deal. Looking ahead UK industrial production and trade balance data is released
at 0930GMT followed by NIESR GDP estimate for November at 1300GMT. Attention
will then turn to US non-farm payroll data at 1330GMT. MNI PINCH calculate a 54%
chance of a rate hike in May 2018 & see following levels in the short end of the
Sonia curve:-
* 6-mth +0.3bp at 0.51%
* 9-mth +0.7bp at 0.555%
* 12-mth +1.2bp at 0.601%
* 15-mth +1.4bp at 0.636%
* 18-mth +1.9bp at 0.671%
* 21-mth +2bp at 0.701%
* 2-yr +2.3bp at 0.732%
* 3-yr +3.2bp at 0.833%

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