After last week’s flurry of inflation data releases, this week is shaping up to be relatively quiet on the economic calendar. This provides an opportunity to assess South Africa’s current market landscape.
The Rand has strengthened against the Dollar, now trading at R17.47 compared with R17.72 last week, while the Euro (€20.47) and Sterling (£23.62) have remained broadly steady. Bonds have firmed, with the 10-year yield at 9.52%. Locally, inflation printed at 3.5% YoY from the previous 3.0%. Turning to interest rates, the 1×4 FRA is currently just below repo at 6.94%, while the 2-year swap is at 6.73% and the 3-year sits 5bps higher at 6.78%.
