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Rand Tad Weaker, Linkers Auction Inbound

ZAR

A failure to close below the 18.5 figure is followed by modest recovery in spot USD/ZAR this morning, even as the BBDXY Index operates below neutral levels. The pair last deals at 18.5749, around 250 pips above neutral levels. The initial bull trigger is associated with Apr 19/Feb 23 highs of 19.3862/99, while bears look for losses past Apr 9 low of 18.4131.

  • SAGBs have softened across the curve, with 10-year breakeven inflation rate climbing to 6.91%. South Africa will hold an auction of inflation-linked bonds today.
  • The commodity complex is a tad firmer, with energy commodities pacing gains, while precious metals are lagging behind (gold -$4.2/oz.).
  • Moody's warned that the aftermath of the upcoming general elections could exacerbate troubles with addressing South Africa's systemic challenges.

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