South African bonds were unchanged in afternoon trade on Monday as the market awaited new developments. Local bonds were following a stable rand and a firmer US bond market. Domestically, Statistics SA is expected to release consumer price index (CPI) data for July on Wednesday. Inflation has been forecast to ease to 4.6% from 5.1% in June, as a result of lower food and transport costs. Globally, the Jackson Hole summit for central banks, which begins on Thursday, will be closely watched for comments about interest rate increases this year. Central banks have become cautious about raising rates further in an environment of subdued inflation. The two stars of the gathering will undoubtedly be European Central Bank (ECB) president Mario Draghi and US Federal Reserve chairwoman Janet Yellen, said FXTM analyst Hussein Sayed. "When looking at bond yields across the globe, investors seem to be convinced that inflation isn’t returning anytime soon." However, financial asset prices are worr...
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