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SAGBs Open Tentatively as Threats of Further Unrest Bolster Uncertainty

SOUTH AFRICA
  • SAGBs trade a fraction firmer at the start of play today, having closed Friday's session mostly on the front foot.
  • 2Y yields closed below the 5.00 handle after a choppy week, while 10 & 30y yields failed to hold above 9.30 & 10.60 respectively with markets fading moves higher.
  • 9.20 & 10.50 remain key levels to the downside to unlock a move towards the 03 Aug lows.
  • SA's 5Y CDS pulled back into the lateral range from 200-210 after briefly breaking the upper threshold. Rumours of a national shutdown may spark more uncertainty in ZAR assets and risk premia.
  • However, no reports of follow-through on threats of violence/unrest have been noted yet with the police on high alert since yesterday.
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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