Bonds flat as market waits for central bank signals
Inflation data will be closely watched as the Reserve Bank mulls further interest-rate cuts this year, says Rand Merchant Bank analyst John Cairns
South African bonds were little changed shortly before noon on Monday, as investors await direction from global events this week.On the local front, Statistics SA will release consumer price index (CPI) data for July on Wednesday. Inflation is expected to ease to 4.6% from 5.1% in June, as a result of lower food and transport costs.The data would be closely watched, as the Reserve Bank considered further interest-rate cuts this year, said Rand Merchant Bank analyst John Cairns. Global markets were providing little direction to the rand and bonds after Wall Street ended last week tracking sideways, said Cairns.On the central bank front, attention this week will be on the Jackson Hole summit, which begins on Thursday. Investors will pay close attention to the comments from global central bankers.Federal Reserve chairwoman Janet Yellen and European Central Bank (ECB) president Mario Draghi will both make comments on monetary policy. This follows risk-averse trading last week, the depar...
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