South African bonds were firmer shortly before midday on Wednesday, as market focus shifts to the US Federal Reserve open market committee minutes to be released later on the day. These minutes come after upbeat US retail data on Tuesday, with analysts mixed as to the extent comments from officials would move the market. Standard Bank trader Warrick Butler said he did not expect the Fed minutes to create volatility, with officials now on record as to their positions held at the meeting. TreasuryOne dealer Andre Botha said the minutes would be scrutinised for what was said about recent inflation data, and the prospect of the Fed unwinding its balance sheet. Further interest-rate increases from the Fed are expected to weaken the rand which, along with other emerging-market currencies, has been boosted by historically low interest rates in developed markets. The rand is also at risk from domestic political factors, amid low growth and the possibility of further sovereign credit ratings...
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