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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 Monday morning trade
compared to Friday's close as cracks within the Tory seam to be getting wider on
Brexit and there are questions over Theresa May leadership once again. While UK
is seeking the ability to vet new EU laws during transitional phase which is set
to clash with the EU and possibly delay any agreement. Little data from the UK
today so attention likely on US personal income. MNI PINCH calculate 51% chance
of a hike in May 2018. Current levels in short end Sonia:-
* 6-mth +0.3bp at 0.529%
* 9-mth +0.5bp at 0.584%
* 12-mth +0.6bp at 0.64%
* 15-mth +0.8bp at 0.686%
* 18-mth +1bp at 0.731%
* 21-mth +1bp at 0.773%
* 2-yr +1.1bp at 0.813%
* 3-yr +1.5bp at 0.948%

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