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Local Rates Maintain Post-SARB Bullish Momentum

SOUTH AFRICA
  • Local rates open on the front foot, having gained bullish traction in yesterday's session post-SARB meeting
  • Supported by higher growth projections and muted inflation projections.
  • 2Y & 10Y yields saw the most interest: 2Y -5.3bp, 10Y -6.7bp.
  • Back end of the curve seems to have retained this momentum amid firmer global risk sentiment this morning as 11 May lows come into sight.
  • W/w the curve trades +15-30bp higher in the 3m-1y section of the curve, with the 10Y still also +30bp above last week's levels but narrowing the gap post-SARB.
  • SA's 5Y CDS has dropped 3.12% w/w, 1Y basis swaps also pulled back slightly from new all-time high at 122.
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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