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

SONIA: The front end of the Sonia curve is steeper in early Wednesday morning

trade compared to Tuesday's close as XpertHR says that employers are predicting

pay rewards of 2.5% in 2018, highest level in nearly 4-yrs. Looking ahead,

before the Fed decision UK releases Jan labour report which includes avg weekly

earnings and also public borrowing numbers for Feb at 0930GMT. Attention then

turns to Fed monetary policy decision and the updated dot plot curve. MNI PINCH

calculate 84.5% chance of a hike in May-18 and a 58% chance of a second rate

hike in November. Current levels in short end Sonia:-

* 6-mth +0.2bp at 0.646%

* 9-mth +0.3bp at 0.705%

* 12-mth +0.5bp at 0.756%

* 15-mth +0.6bp at 0.804%

* 18-mth +0.9bp at 0.851%

* 21-mth +1bp at 0.893%

* 2-yr +1bp at 0.931%

* 3-yr +1.3bp at 1.047%