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Rand Registers Losses For Third Straight Day

ZAR

Spot USD/ZAR ticks higher and last deals +425 at 19.120, with local headline flow relatively thin this morning. Bulls continue to look for a break above Feb 5 high of 19.1066, followed by Jan 22 high of 19.2180. On the flip side, losses past Feb 2 low of 18.5578 would bring Dec 15 low of 18.1092 into view.

  • South Africa sold ZAR520bn of 2046 I/L bonds, drawing a bid/cover ratio of 1.14x. An auction of ZAR480bn I/L bonds attracted a bid/cover of 1.35x. SAGB yields are a touch higher across the curve, with 10-year inflation breakeven rate last sitting at 6.46%.
  • The composite BBG Commodity Index has shed 0.25%, with the precious metals subindex little changed at typing.
  • Eskom escalated power cuts to Stage 4 until further notice amid unexpected breakdowns of two generation units.

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