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SAGBs Reverse Gains as USTs Tick higher

SOUTH AFRICA
  • SAGBs kick off softer this morning with 10-30Y yields up +6.1-6.4bp in early trading.
  • This follows yesterday’s broadly firmer session with the curve bull flattening -5.7-8.1bp in 5-30Y tenors after breaking key supports.
  • 30Y yields now stand just shy of the Dec lows, with 10.50 the next hurdle to deal with.
  • 1w & 1m USDZAR risk reversals & implied vols have been diverging the broader EM space, falling while the likes of Russia and Turkey have been rising.
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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