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Choppy Early Trading In SAGBs

SOUTH AFRICA

It has been a choppy start for SAGBs ahead of today's auctions (ZAR6.6bn of 2030/2031 SAGBs on offer). Following the initial sell-off, SAGBs have recovered ground and trade back in line with yesterday's close.

  • While there has been some pressure on the equity front with foreign investors unloading ZAR1.46bn last week, demand for local debt has continued to improve following the February unwind with net purchases by foreigners increasing by ZAR1.033bn over the same period.
  • The burst of volatility in TRY markets in recent days, the intensifying fallout in Europe over vaccine distribution, and pressure on G10 yields provide plenty of headwinds for SAGBs.

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