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SAGB Curve Bull Flattens Pre-SARB

SOUTH AFRICA

30 Minute call to the SARB:

  • SAGBs trading bull flatter in the lead-up to the meeting: 2Y +0.5bp, 10Y -0.1bp, 15Y -4.3bp, 30Y -4.3bp
  • USD/ZAR -1.16% on the back of selling pressure on the BBDXY post-FOMC
  • Expectation is for a hold, guidance slightly cautious (short-term balance for risks to CPI to the upside)
  • medium-term pricing dynamics still broadly balanced around the midpoint of the 3-6% range in 2022-2023
  • Focus on assessment of GDP following rebasing & discussion of 3-4% inflation target

MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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