The South African bond market was relatively stable on Monday morning at the start of a week in which the Reserve Bank’s monetary policy committee is due to meet. The Bank is widely expected to keep interest rates on hold but markets will keep a close watch on governor Lesetja Kganyago’s commentary regarding inflation expectations. Lesetja said in November that the committee expected headline consumer inflation to return to its target band of 3%-6% in 2017. Meanwhile, consumer inflation accelerated to an annual rate of 6.8% in December from 6.6% in November. The yield on the R186 bond was at 8.70% in early trade from 8.71% on Friday while the rand traded at R13.5351 to the dollar from R13.6208%. US treasury bonds were relatively stronger in early trade but the dollar was under pressure following the inauguration of Donald Trump as the 45th US president. "This week, markets will continue to watch developments from the White House as Trump settles into his new job," Rand Merchant Bank...
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