Bonds trade firmer as focus shifts to Moody’s economic review
he market is focusing on the Reserve Bank judgment earlier on Tuesday and the expected economic review from ratings agency Moody’s later in the day
South African bonds were slightly firmer shortly before midday on Tuesday, as the market digested a Reserve Bank legal victory on its mandate, as well as cooled tension over North Korea. Analysts said local factors would be watched, even as emerging-markets were expected to continue to be buoyed by risk-on sentiment in coming sessions. This followed continued signals from US officials that diplomacy would come the fore in the stand-off with North Korea over its nuclear programme. Both the Reserve Bank judgment and an expected economic review from ratings agency Moody’s later on Tuesday, would be the market’s focus, said Rand Merchant Bank analyst Isaah Mhlanga. Moody’s was expected to revise its economic growth forecast for SA to less than 1% in 2017 and less than 2% in 2018, said Mhlanga. Also expected was a focus on business confidence, state-owned enterprise funding and weak institutional strength, as risks to economic growth, he said. Earlier on Tuesday, the High Court in Pretor...
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