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The strip is coming under pressure

SONIA
  • Some downside momentum in the SONIA strip, volumes are quite low which helps exacerbated the moves.
  • Although, it is following EGBs and Euribor, it is a faster pace in the UK strip.
  • Some suggest that FM may have been long, which has helped some of the momentum.
  • Median for next week's BoE is for a 25bps hike to 5.50%.

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