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10Y Leads Bull Flattening Momentum after Taking Out 9.00 Support

SOUTH AFRICA
  • Local rates trade slightly weaker at the open after a broadly positive session yesterday.
  • Local curve closed play bull flatter yesterday, with gains concentrated in 10 & 15Y tenors: -6.6bp & -5.5bp respectively while the front end remained mostly flat.
  • 10Y has breached the 9.00 handle, but will need to hold onto the level to unlock more downside gains.
  • Swaps saw muted price action in yesterday's session, drifting marginally lower at the front end towards April 20 Support.
  • 5Y CDS has declined 10.18% since 05 May, now hovering around 200 support.

Data: 1200BST

  • Manufacturing production m/m exp at 0.8% vs -1.2% prior
  • Manufacturing production y/y exp at 01.1%% vs -2.1%
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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