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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- Post-US CPI strength in the ZAR persists, with USD/ZAR holding close to the week's lows of 16.1104. A break below here for the pair would put the rate at the lowest since late June, opening 15.9074, the 100-dma, as well as 15.8542, the 50% retracement of the Apr - Jul rally.
- The USD/ZAR price action is mirrored in local bond yields, which continue to roll lower, with 10y yields dropping to 10.25% this morning. This marks the lowest print since late May.
- The yield on the 2032 bond has now dropped around 125bps from the July high of 11.521% - the highest since the COVID crisis.
- Markets may also be pricing in a smoother process for the re-nomination of Ramaphosa at the December ANC meeting after the resolution of the policy conference a week or so ago. Similarly, the fading risk of Eskom load-shedding should bolster the growth outlook through the rest of 2022.
- This sentiment is echoed in fund flow data, with foreign investors becoming net buyers of South African debt for a sixth consecutive session - the longest streak since June.
- The improved mood among SA assets also coincides with better forward-looking economic indicators, with the SACCI Business Confidence release coming in ahead of expectations this week, as well as the July PMI data beating forecast.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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