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Curve Bull flattens 40bp W/W as ZAR Carry, Relative Value Seem Too Good To Miss

SOUTH AFRICA
  • Local rates trade mostly flat at the open with a slight bear steepening bias in line with slight risk-off filtering through from the APAC session and a weaker close for SAGBs on Friday.
  • W/w we had a substantial bull flattening driven from the 15-30Y section of the curve, moving 35-40bp lower. Front end also dipped lower -10-24bp in the 2-10Y portion of the curve.
  • Sell-side remains bullish SA duration, given solid real yields, low implied vols and relative value vs other high-beta peers.
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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