SOUTH AFRICA: Trump Confirms Absence At G20 Summit, GNU Plans Another Lekgotla
Nov-06 08:03
- US President Donald Trump ramped up political pressure on South Africa again, questioning the country's role in the G20 and confirming that he would not attend the G20 Leaders' Summit in Johannesburg later this month. The POTUS told the American Business Forum in Miami that 'South Africa shouldn't even be in the G's anymore, because what's happened there is bad'. At one point he appeared to have confused the country with South America, noting that 'for generations, Miami has been a haven for those fleeing communist tyranny in South Africa.' The expectation is that Vice President JD Vance will travel for the G20 summit, where South Africa will hand over the group's rotational presidency to the US.
- Democratic Alliance (DA) leader John Steenhuisen said that the Government of National Unity (GNU) will meet for a lekgotla to try and get its constituent parties 'on the same page when it comes to foreign policy'. This comes on the back of an agreement signed by GNU leaders after their two-day retreat concluded on Monday. Steenhuisen also expressed satisfaction with the process of drafting the Medium-Term Budget Policy Statement (MTBPS) becoming more consensual.
- The uMkhonto weSizwe (MK) Party has suspended its deputy leader John Hlophe with immediate effect over his unilateral decision to replace Colleen Makhubele as the party's chief whip while party leader Jacob Zuma was away. The party has experienced infighting over future direction, which has complicated its efforts to mount a challenge to the governing coalition.
- The Presidency said that 18 South African citizens have sent a 'distress call for assistance to return home' from the Donbas in eastern Ukraine, where they were 'lured to join mercenary forces (...) under the pretext of lucrative employment contracts'.
- South Africa will report electricity production/consumption data for the month of September at 11:00GMT/13:00SAST.
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GERMAN AUCTION PREVIEW: 2.20% Oct-30 Bobl
Oct-07 08:03
This morning, Germany will hold a Bobl auction. On offer will be E4.5bln of the 2.20% Oct-30 Bobl.
- The size is in line with the last re-open of this issue on September 16.
- Recent auctions in the German Bobl segment haven't seen particularly strong demand metrics but the segment arguably has fared better than others on the German curve when looking at bid-to-cover and bid-to-offer ratios. In 2025, Bobl auction bid-to-covers came in between 1.23x to 2.52x, and bid-to-offers between 0.95x to 1.91x, respective 1.93x / 1.47x ratios reached in the September 16 auction were towards the higher end of these ranges. Low prices have been above the secondary market mid-prices throughout 2025.
- The next German auction will be next tomorrow's 15-year auction with E1bln of the 2.60% May-41 Bund (ISIN: DE000BU2F009) and E1bln of the 3.25% Jul-42 Bund (ISIN: DE0001135432) on offer.
- The 2.20% Oct-30 Bobl will be reopened next on October 28.
- Timing: Results will be available shortly after the bidding window closes at 10:30BST / 11:30CET.
GILTS: Bear Steepening
Oct-07 07:57
Gilts sell off on the global cues detailed in recent bullets covering weakness in wider core global FI markets before stabilising off lows.
- Futures respect yesterday’s low ta 90.41, last -20 at 90.45.
- Bears remain in technical control, with initial support and resistance still located at 90.26 & 91.28.
- Yields 0.5-2.0bp higher, curve steeper.
- 10s last ~4.75%, still operating within the multi-week 4.60-4.80% closing range.
- Light hawkish moves in GBP STIRs given moves further out the curve, SONIA futures flat to 2.0 lower, BoE-dated OIS pricing just under 5bp of easing through year-end.
- The DMO will sell GBP1.25bln of the 0.125% Jan-28 gilt via PGT this morning.
- Little else of note on the UK calendar.
- Fiscal matters continue to dominate domestic news flow.
- Former BoE MPC member Saunders told BBG that inflation will provide the government with a net GBP5bln of additional revenue, although that is hardly positive news for households.
EQUITY OPTIONS: BNP Rolling Put
Oct-07 07:54
BNP (17th Oct) 80p vs (21st Nov) 76p, bought the Oct for 1.55 in 1.25k.
