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SAGBs Tread Water as Chinese Stocks Plummet on Cvoid Risks

  • SAGBs open +1.3bp higher this morning following a sharp decline in Chinese stocks during the APAC session as covid cases and lockdowns gain momentum.
  • 10-30Y yields rose +9.2-12.1bp in yesterday’s session in line with weaker global risk sentiment, despite a softening in oil prices.
  • 30Y yields are hovering just above the 50% fib of the 17 Feb-08 Match range, with 10.60 the next notable support.
  • This morning the treasury warned of inflation moving towards the 6% upper band of the SARB’s target range on the back of Ukraine risks.
  • However, 1x4 FRA-Jiba3m spreads remain contained at +33bp ahead of the next meeting.

MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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