Bonds were mixed on Thursday afternoon as US treasuries weakened on the promised unwinding of the US Federal Reserve’s $4.5-trillion balance sheet, which it said would begin "relatively soon". Local bonds also reacted to a weaker rand, which could not hold onto its best intraday level of R12.8550 to the dollar, as the latter gained on the euro. Nedbank Corporate and Investment Banking analysts said the Fed’s unwinding process could start in September, with an expected initial monthly $10bn run-off. The size will be stepped up gradually over the medium term and the Fed expects this normalisation process to take its balance sheet to below $3-trillion. "The Fed believes that this is expected by the market, and will therefore cause minimal disruption," Nedbank said. At 3.30pm the R186 was bid at 8.54% from 8.525%, and the R207 was at 7.26% from 7.29%. The rand was at R12.9653 from R12.8989. Nonresidents in the bond market were more active than locals on Wednesday, and they appeared to b...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.