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Post-Budget Auction Pace Slower Than Expected

SOUTH AFRICA
  • The updated auction schedule follows yesterday's SA budget, which detailed a faster pace of fiscal consolidation than expected.
  • With fixed-rate auction levels unchanged (ZAR 3.9bln), and inflation-linked issuance levels dropping (to ZAR 1bln from ZAR 1.2bln), that's at the lower-end of expectations.
  • JPM had pencilled a monthly FRN issuance pace of R4-5bln vs. this morning's announcement of ~R4.3bln and fixed rate issuance of R4.7bln vs. This morning's announced R3.9bln pace.
  • As such, the size of today's total bond issuance plans are lower than expected.

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