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Upside CPI/PPI surprises Drive Bear Flattener In Local Yields

SOUTH AFRICA
  • Yields seen drifting slightly higher at the open in a slight bear steepener.
  • 2Y yields muted after repricing ~19bp higher following two successively firmer CPI and PPI prints on Wed/Thur.
  • 10Y remains pegged down by overhead resistance at 8.90, but holds a flat to higher bias.
  • USD/ZAR treading water around 15.21 with successive moves lower towards 15.00 delivering positive RSI divergence on the daily and 4h charts - indicative of weaker downside momentum.
  • With limited local catalysts the cross should track global risk sentiment and USD-side factors today.
  • 1w vols ticking marginally higher for a third straight session while risk reversals remain subdued.
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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