Bonds stronger due to firmer rand
Nedbank analysts say global markets have traded cautiously, leading to firmer local markets, although not enough to breach critical levels
The South African bond market was on a firmer footing on Tuesday morning, taking its cue from a stronger rand. The strength in the local bond and currency markets came as investors await comments from US Federal Reserve chairwoman Janet Yellen, who is scheduled to testify before the US congress later in the day. Yellen’s remarks will be closely scrutinised for clues on the future monetary policy path. So far, the expectation is that the Fed will increase rates at least three times in 2017. The planned increase in US interest rates is expected to increase the demand for US treasury bonds. Nedbank Corporate and Investment Banking (CIB) analysts said "global markets traded cautiously" ahead of Yellen’s testimony, leading to stronger South African markets, although not enough to breach critical levels. Statistics SA is due to release consumer price index (CPI) data for January on Wednesday. Inflation is expected to have moderated to 6.7% in January year on year from 6.8% in December. Th...
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