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Bid to Covers Surge as Linker Auction Drops in Size

SOUTH AFRICA

Linker Auction Results:

  • 30M Rand of 2% 2025 Linkers; Bid-Cover 8.5x (3.74x), Avg yield 2.02% (2.348%)
  • 15M Rand of 1.875% 2033 Linkers; Bid-Cover 16x (1.68x), Avg yield 3.93% (4.2%)
  • 25M Rand of 2.5% 2046 Linkers; Bid-Cover 19.4x(4.73), Avg yield 4.04% (4.362%)

    Massive surge in demand for linkers after this week's lower than expected inflation print at 3.2% y/y. Most notable rise in 2033s, but surge in bid to covers appears mostly due to decreased auction size from the traditional R250-320m range
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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