Bonds trade firmer as rand records marginal gains on softer dollar
It seems medium-term positives, such as a better current account feeding into a more positive rand outlook, are being reflected in lower bond yields, one analyst says
The bond market was firmer at midday on Monday in upbeat trade ahead of the release of consumer inflation data on Wednesday. The market was also keeping an eye on US Federal Reserve chairperson Janet Yellen, who is scheduled to speak at congress on Tuesday. She might provide clues on the expected interest-rate trajectory for the year. A marginally firmer rand on a softer dollar supported sentiment, despite a weaker trend among US treasuries. At 11.42am the R186 was bid at 8.72% from 8.77% and the R207 was bid at 7.845% from 7.89%. The rand was at R13.3322 against the dollar from R13.3512. The euro was at $1.064 from $1.0627. Rand Merchant Bank (RMB) analyst Deon Kohlmeyer said foreigners entered the market towards the end of last week. "It seemed as if the medium-term positives, such as a better current account feeding into a more positive rand outlook and lower inflation expectations, were being reflected in lower bond yields," he said. Consumer price inflation is expected to have ...
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