JSE softer as weaker global bonds point to imminent US interest rate hike
The JSE opened weaker on Friday amid signs global risk-off sentiment was gathering momentum, with bonds weakening and equity markets closing softer on mixed earnings data. Bond yields have been rising in October amid indications the US Federal Reserve’s Federal open market committee would proceed with a rate hike in December. The US 10-year treasury bond yield was 4.14% higher at 1.8692% on Friday morning. It was at 1.31% in July. The UK 10-year bond yield was 2.3% higher at 1.1741% from 0.49% in August. "Earnings data continue to dominate the trading environment but, significantly, the past 48 hours have witnessed meaningful adjustments in the global yield environment," Momentum SP Reid said in an early morning note. Momentum said the pick-up in yield reflected improved macroeconomic data. "But it also increasingly suggested that market participants were bracing themselves for a potential interest-rate hike from the Fed in December," it said. At 9.30am the all share was 0.43% lower...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.