Bonds weaken marginally as investors cautiously await central bank indaba
Meanwhile, analysts said inflation data may give some guidance on when the Reserve Bank might cut interest rates again in a bid to support local economic growth
South African bonds were marginally weaker shortly before midday on Tuesday, with analysts expecting trade to remain range-bound ahead of the Jackson Hole conference on Thursday. The conference is expected to result in policy signals from both the European Central Bank and US Federal Reserve on the plans for unwinding balance sheets amid an uptick in global economic growth. Global and local markets were trading sideways given the absence of any meaningful data or news, but risk-aversion from last week seemed to be slowly easing, said Rand Merchant Bank analyst John Cairns. Sasfin Securities analysts said that liquidity levels continued to be light, which was likely to adversely affect Tuesday’s local government bond auction. On Wednesday Statistics SA will release consumer price index (CPI) data for July. Inflation is expected to ease from 5.1% in June as a result of lower food and transport costs. Analysts said the inflation print may give some guidance on when the Reserve Bank may...
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