Bonds steady at stronger levels
Standard Bank trader Warrick Butler says financial markets remain ‘very much undecided’, which is evident in the ‘rather dull price action in most asset classes’
The South African bond market stabilised at stronger levels at the start of the new week, during which key local data, inflation figures, are due to be released. The consumer price inflation (CPI) is expected to have eased to an annual rate of 6.7% in January, from 6.8% in December, an outcome that bodes well for the bond market. Investors will keep tabs on the US Federal Reserve chairwoman Janet Yellen, who is scheduled to speak on Tuesday. Yellen’s remarks will be closely scrutinised for clues on future interest rate increases. "The world of financial markets is still very much undecided, which is reflected in the rather dull price action in most asset classes," Standard Bank trader Warrick Butler said. The yield on the benchmark R186 was at 8.76% in early trade, from 8.77% on Friday. The yield on the US 10-year treasury note was also relatively stable at 2.4198%, from 2.4081%.
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