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2Y Yields Fall As Inflation Expectations Stabilise on Softer Oil Markets

SOUTH AFRICA
  • SAGBs kick off on the front foot this morning, maintaining yesterday's bull steepening momentum as selling pressure in oil markets weighed on domestic inflation expectations.
  • 2Y yields fell -6.8bp yesterday, breaching 5.50 support.
  • Since the start of September 2Y yields have risen +56bp, with markets pricing in +66.7bp in SARB hikes over a 3-6m period - diverging from local (and our) expectations for a hold.

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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