South African bonds were firmer on Thursday morning after the US Federal Reserve left interest rates unchanged but indicated it would start shrinking its balance sheet "relatively soon". Markets had expected that the Fed would leave interest rates unchanged. Dow Jones Newswires reported that the rate-setting Federal Open Market Committee voted unanimously on the decision to keep interest rates on hold and said it expected to begin shrinking bond holdings "relatively soon", a phrase that often has preceded action at the next policy meeting. "Fed officials offered little indication that several weak inflation readings had altered their plans to raise short-term interest rates once more this year," the newswire said. The rand, which bonds usually track, was slightly firmer against the dollar. Nedbank analysts said the market had interpreted the Fed’s policy statement as dovish, which had resulted in the dollar being on the "back foot", and emerging markets and the rand had benefited. A...
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