The South African bond market was a little weaker at midday on Thursday, tracking the rand ahead of the Reserve Bank’s interest-rate announcement later in the afternoon. The rand was marginally softer to the dollar ahead of the ANC’s national executive committee (NEC) meeting at the weekend amid reports that President Jacob Zuma might be removed as the party’s president. Bonds were firmer earlier in the day after Wednesday’s better than expected consumer inflation data. Statistics SA reported that the annual inflation rate for April was 5.3%, compared with the corresponding annual rate of 6.1% in March. At 11.51am the R186 was bid at 8.50% from 8.48% previously and the R207 was bid at 7.36% from 7.325%. The rand was at R12.8991 to the dollar from R12.8957. The market will be watching the Bank’s statement keenly for indications on how long rates could be expected to remain flat following its previous guidance that the rate-hiking cycle was at an end for now. A more hawkish statement ...
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