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SAGBs Revel in Eskom Debt Reduction, Curve Flattens

SOUTH AFRICA
  • Local rates trade little changed around the open as mixed risk sentiment filters through from the APAC session.
  • SAGBs caught a bid yesterday after Eskom noted substantial debt reduction progress, reducing risks to the fiscus and flattening the curve.
  • 10-30Y yields were better bid, trading -9.2-11bp lower on the day, while the 2Y lifted +4.1bp – pressuring 4.90 resistance.
  • Long-dated tenors are now through their May lows, eyeing mid-Feb supports.
  • 10Y looking to target 9.00-9.10, should risk sentiment remain favourable.
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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