CORRECTION: SAGBs Firm With Lockdown Reality Kicking In

SAGBs have traded firmer at the open with marginal outperformance at the longer end of the curve. Cash yields are broadly 1-2bp lower across much of the curve, although the short end has traded weaker with the 2-year benchmark yield 2bp higher.

• There has been limited movement in ZAR so far with USDZAR flat on the day.
• The government's decision to institute a national lockdown has weighed on risk sentiment. Concerns have been mounting over the impact of the Delta variant in countries, both emerging and developed, which have not made signficant progress on vaccinations. Given that South Africa is not expected to fully vaccinate the population until June 2022, the economy is particularly vulnerable to future shocks related to renewed Covid restrictions.
• South African non-farm payrolls data for the first quarter will be published at 1030GMT.