South African bonds were slightly firmer on Thursday morning, tracking the rand — which, like other emerging-market currencies, was recovering some recent losses.The minutes from September’s Federal Open Market Committee (FOMC) meeting, released on Wednesday, saw the dollar lose some ground against its peers, after the committee indicated concerns with inflation, which the market interpreted as dovish. Emerging market bonds and currencies have been under pressure lately, as signs of an improving US economy increased the probability of an interest-rate increase, which could lead to a capital flight to developed economies. Sasfin Securities analysts said the FOMC was adamant that an interest-rate increase was in the offering before year-end, but the fierce debate about inflation suggested there wasn’t consensus about the path thereafter."The dollar weakness gave emerging-market currencies a boost and helped emerging-market bonds outpace," the analysts said.At 9.21am the R186 governmen...
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