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SAGBs Trim W/W Gains, Feb Budget Looms

SOUTH AFRICA
  • SAGBs trade softer on the margins this morning with 10-30Y yields +1.5-2.6bp higher in early trading.
  • This follows a firmer close on Friday with bull flattening momentum holding after key support gave way in 10-30Y tenors (-2.7-5.1bp lower on the day).
  • W/w the curve closed -15-18bp bull flatter in 10-30Y yields, while the 2Y rose +2.4bp in response to an upside surprise in CPI.
  • Post-SARB the focus shifts to the Feb budget, with the improved fiscal picture and easing measures from the PBoC adding support for SAGBs going into the meeting.
  • Key support in the 10Y stands at 9.68 for a move down towards 9.50-9.40 (sept lows).

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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