The South African bond market was steady on Monday at midday, with markets waiting for clarity after US President Donald Trump’s inauguration speech. Trump’s speech was criticised for having no information about stimulus measures. Nedbank economists said the focus would remain on Trump’s comments about trade with China and other policy-driven risks. Dow Jones Newswires reported that Trump’s preference for a weaker dollar and his focus on trade clashed with his promised 4% growth rate that would send bond yields and the dollar higher. The Reserve Bank’s monetary policy committee is due to meet on Tuesday. Nedbank economists said the bank was expected to keep interest rates on hold as inflation was likely to ease in coming months. At 11.29AM the bid on the R186 bond was at 8.73% from Friday’s 8.71% while the bid on the R207 was 7.95% from 7.955%. The bid on US 10-year treasury bonds was at 2.4534% from 2.4672%.
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