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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 Thursday morning
trade compared to Wednesday's close as PM May sacks here closet ally and most
senior minister and said will allow delay in Brexit in exceptional circumstances
to appease Tory rebels. Looking ahead there is latest public service borrowing
numbers released at 0930GMT with consensus seeing PNSBx rising to Stg9bln from
Stg8bln. MNI PINCH calculate a 46% chance of a rate hike in May 2018 & see
following levels in short end Sonia:-
* 6-mth +0.4bp at 0.497%
* 9-mth +0.4bp at 0.534%
* 12-mth +0.3bp at 0.567%
* 15-mth +0.4bp at 0.595%
* 18-mth +0.4bp at 0.621%
* 21-mth +0.4bp at 0.646%
* 2-yr +0.5bp at 0.67%
* 3-yr +0.6bp at 0.752%

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