South African bonds were steady on Monday morning, while the rand was flat against a softer dollar. Growing uncertainty around the US administration’s ability to effect stimulus growth has put pressure on the dollar. The US Federal Reserve is set to meet later this week, with a policy statement scheduled for release on Wednesday. The Fed is expected to keep interest rates unchanged, as the European Central Bank (ECB) and the Bank of Japan (BoJ) did last week. Rand Merchant Bank analyst Isaah Mhlanga said the market was increasingly doubtful about US President Donald Trump’s promised stimulus following the failure to repeal and replace Obamacare. "Actual economic data have not caught up to positive sentiment, although the Fed has always phrased the undershoots as transitory," said Mhlanga. The market expects to get some insight into the Fed’s plans to normalise its balance sheet. At 9am the R186 was bid at 8.52% from Friday’s 8.50% and the R207 at 7.28% from 7.27% The rand was at R12...
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