May 13, 2022 06:36 GMT
- SAGBs kick off slightly firmer this morning, following on from improved risk sentiment out of APAC. Yesterday’s session saw the curve close -3-13.6bp lower across the breadth as UST yields drifted lower with the 5Y outperforming on the day.
- W/w, the SAGB curve has flipped to minor gains with a slight bull steepening bias holding.
- 10 & 30Y tenors moved below support at 10.40 & 11.00 respectively and now eye the 10.30-1.20 & 10.929-10.791 ranges with the lower bounds marking a bear trigger to retesting the April lows.
- Focus shifts towards CPI & the SARB next week as markets position for the first +50bp hike in over 6 years.
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