Bonds weaker as market eyes consumer inflation data and rate decision
South African bonds were marginally weaker at midday on Tuesday as the market remained focused on the Reserve Bank’s interest rate decision on Thursday, and the release of consumer inflation data on Wednesday. The stable rand and slightly lower developed-market bond yields kept local yields from rising further. Investors are also waiting for the US Federal Reserve open market committee’s policy statement on Wednesday, which could affect the rand negatively if the Fed’s stance becomes more hawkish. At present, the market has a 60% expectation of a rate hike in December. Analysts expect further detail from the Fed on plans to reduce its $4.5-trillion balance sheet in the months ahead. The main events this week include the Fed statement on Wednesday, and the release of local consumer inflation data, said Rand Merchant Bank (RMB) analyst Michelle Wohlberg. "Until then, bond trade is expected to remain subdued and range-bound." At 11.30am, the yield on the R186 was at 8.400% from 8.385% ...
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