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SAGB Yields Jump +15-20bp as Russia Launches Full-Scale Ukraine Invasion

  • SAGBs open sharply higher following the full-scale Russian invasion of Ukraine with risk-off hitting risk assets across the board.
  • 10-30Y yields stand +15-18bp higher, having closed yesterday little changed following the budget.
  • The key components came out in line with expectations, with improved deficit projections and a slightly better growth forecast for 2022 at 2.1%.
  • This in line delivery was the primary reason for little change in markets, with Godongwana showing encouraging signs of sticking with the fiscal consolidation.
  • However, markets were concerned about fiscal slippage over the 1.8% allocation to the public sector wage bill – with negotiations with unions kicking off next month.
  • Key 10y Levels: Res1: 9.877, Res2: 10.032, Sup1: 9.657, Sup2: 9.557. Key 30Y levels: Res1: 10.591, Res2: 10.782, Sup1: 10.40, Sup2: 10.282

MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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