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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 reacting to release of Jan FOMC minutes that
highlighted "further" gradual hikes needed due to better near-term outlook. In
the UK, eyes will be on 2nd estimate of Q4 GDP at 0930GMT, with consensus for an
unchanged 0.5% q/q reading and any rumours circulating from UK Brexit cabinet
sub-committee meeting(s) at Chequers. MNI PINCH calculate 86% chance of a hike
in May-18 and a 67% chance of a second rate hike in December. Current levels in
short end Sonia:-
* 6-mth +0.5bp at 0.607%
* 9-mth +0.5bp at 0.672%
* 12-mth +0.5bp at 0.73%
* 15-mth +0.5bp at 0.78%
* 18-mth +0.5bp at 0.825%
* 21-mth +0.5bp at 0.867%
* 2-yr +0.6bp at 0.908%
* 3-yr +0.6bp at 1.038%

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