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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.
SOUTH AFRICA
- {sa} SA 5Y Breakevens have moved to a new yearly high with spot rates approaching the 5.00 handle. Since the start of the month, 5Y breakevens have risen +36bp, with price action accelerating higher this morning (+12bp) alongside longer-term contracts.
- Similarly, 10Y breakevens now trade close to their YTD highs at 6.20, having risen +43bp since the start of the month – breaking a bear channel pattern established back in April 2021.
- Both contracts continue to track oil price developments closely, with 10Y B/Es showing a slightly higher degree of sensitivity to firmer oil prices. Brent currently trades a fraction below $80/bbl – adding risks to forecast revisions CPI into year-end
- This comes as the SARB continues to argue that inflation vectors remain broadly balanced over the medium-term, while acknowledging that short-term risks remain to the upside given higher oil and food prices – all of which will need to be monitored closely into year-end.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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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