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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- Longer-term forward rates jumped +14bp to 208bp following this morning’s hot PPI print at 11.9% y/y vs 10.7% exp – adding to expectations for a more drawn-out hiking cycle as the SARB looks to tame elevated inflationary pressures.
- Short term expectations, as measured by 1x4 FRAs also ticked around +2bp higher from +41 to +43bp with markets concerned about an acceleration in the pace of tightening following last meeting’s 3-2 MPC split and expectations for a 50bp hike at the Fed’s May meeting.
- This upside surprise in CPI counters a slightly softer March headline CPI print at 5.9% y/y vs 6.0% exp and will undoubtedly be factored into the SARB’s reaction function, despite most of the inertia coming from exogenous factors affecting global energy markets.
- 9x12 FRA-Jiba3m spreads have risen +35bp since mid-April where they reached a low of 173bp.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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