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CPI Surprise Lifts 2Y Yields, Curve Remains Humped W/W

SOUTH AFRICA
  • Local rates trade flat around the open, having seen the curve bear flatten at the front end following a slight upside CPI surprise at 4.4% vs 4.3% exp.
  • 2Y yields lifted +8.9bp, while 15-30Y yields dipped -2.7-3.9bp.
  • W/w the curve still retains its humped shape, with volatility in US Treasuries adding upside pressure on 10Y yields (+35bp w/w).
  • Duration showing a greater resilience to shifts in global risk sentiment.
  • Focus today on the SARB for its assessment of inflationary factors.
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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