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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ZAR
Broad-based greenback sales have seemingly helped USD/ZAR move away from intraday highs, with the BBDXY index last ~0.8% lower on the day and South African headline flow offering little clarity on the fate of embattled President Cyril Ramaphosa.
- The aggregate BBG Commodity Index operates ~1% above neutral levels, with the precious metals index up over 3%. Precious-metals miner stocks are benefitting from the combination of a firmer commodity complex and Rand weakness, helping keep the FTSE/JSE Africa All Share Index in positive territory despite the damage inflicted by domestic political turmoil on South African bank equities, which posted their largest declines since 2020.
- South Africa's local-currency bonds have tumbled. At the time of typing, 10-year yield sits at 11.510% after printing its best levels since the outbreak of the COVID-19 pandemic in the largest single-day rally since December 2015.
- USD/ZAR implied volatilities have surged across the maturity curve. One-week and one-month tenors both reached their highest points since March 2021.
- The market remains on the lookout for the announcement of the time for President Ramaphosa's touted address to the nation amid ongoing talks between ANC officials.
Fig. 1: South Africa 10-Year Government Bond Yield (%) vs. USD/ZAR
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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