ZAR: Rand Tad Firmer Despite Downtick In Gold Prices
Feb-12 08:50
USD/ZAR has inched lower despite an uptick in the BBDXY Index (+0.1%) and last deals at 18.4494, around 250 pips worse off. Bears look for a dip through Jan 24 low of 18.3022, while bulls keep an eye on Jan 13 high of 19.2296.
- The beginning of the week in South Africa was defined by US President Trump's decision to cut aid to South Africa, which marked an escalation in tensions between the two countries. The issue featured prominently in the post-SONA parliamentary debate, with most parties advocating sticking with a defiant stance.
- SAGB have reversed initial losses and yields now sit in negative territory. South Africa's 5-year and 10-year breakeven inflation rates are at 4.43% and 5.56% respectively.
- The aggregate BBG Commodity Index has shed 0.3%, with the precious metals subindex down by 0.5%. Gold changes hands ~$6.1/oz. lower on the session.
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BUNDS: German 10yr Yield Targets the July high
Jan-13 08:45
- The German 10yr got close to that July high, noted at 2.642%, so far printed a 2.634%.
- This level is slightly lower Today, was at 130.56 on Friday, but at 130.50 Today.
- Further out, and a clear break through that area would open risk towards the 2024 high printed in June at 2.706%.
- 2.706% = 129.83 today.
GERMAN AUCTION PREVIEW: On offer tomorrow
Jan-13 08:42
DFA has announced the coupon of the new Apr-30 Bobl (ISIN: DE000BU25042) at 2.40%. E5bln of that Bobl will be on auction tomorrow, January 14.
EGBS: Natixis Recommend Long 10-Year SPGB vs. OLOs
Jan-13 08:40
Natixis recommend long 10-Year SPGB vs. OLOs
- They believe that “Spain will keep outperforming other European countries on the macro front in 2025 and will enjoy some ratings upgrades as well (Moody’s and Fitch). In the meantime, Belgium will be downgraded to A- during the course of the year, enhancing the underperformance of OLOs vs SPGBs.”
