Free Trial
AUDUSD TECHS

Remains Vulnerable

CANADA

Late Risk Off Sees USDCAD Eye Cycle Highs

US TSY OPTIONS

BLOCK, Late Puts

EURJPY TECHS

Bull Cycle Extends

US

Late Corporate Credit Update

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Yields Falling Further: 10y 125bps Off July High

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.

213 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • 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.