Free Trial

The front end of the Sonia curve is steeper...>

SONIA
SONIA: The front end of the Sonia curve is steeper so far in early Tuesday
morning trade compared to Friday's close, as markets take cue from rise in Eonia
curve on back of Coeure hawkish comments. Looking ahead it is a slow start to
the New Year with UK manufacturing PMI released at 0930GMT. MNI PINCH calculate
a 40.5% chance of a rate hike in May 2018 and a 90% chance or a hike in November
of this year & see following levels in short end Sonia:-
* 6-mth +0.6bp at 0.503%
* 9-mth +0.7bp at 0.538%
* 12-mth +0.9bp at 0.573%
* 15-mth +1.1bp at 0.602%
* 18-mth +1.2bp at 0.628%
* 21-mth +1.2bp at 0.654%
* 2-yr +1.3bp at 0.679%
* 3-yr +1.6bp at 0.763%

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.