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Questions Over Speed Of Vaccine Rollout

SOUTH AFRICA

Summary:

  • The local currency sovereign curve has pushed higher with marginal steepening at the very long-end. Cash yields are 1-2bp higher. Last yields: 2-year 4.826%, 10-year 8.764%, 30-year 10.72%.
  • USDZAR pressured 14.63 before driving down to 14.57 in early European hours.
  • According to a Bloomberg, a coronavirus adviser to the government expects a slower vaccination roll out than currently planned (officially targeted 67% of the population by year-end).
  • There are no data points of note in today's calendar. The preliminary Markit PMIs for the US, published later today, provide a potential catalyst for price action in FX.

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