South African bonds were slightly weaker on Monday just before midday, but held onto some gains made in previous sessions. The rand, which bonds track, had staged a significant recovery against the greenback, supported by local factors and the dollar’s easing rally. Other emerging-market currencies also eased on their losses against the greenback thanks to a softer-than-expected US inflation print released on Friday and an almost entirely priced in US interest-rate increase in December. Sasfin Securities’ bond team said investors appeared to be reasonably comfortable with current holdings of emerging-market bonds, and new cash inflows were on hold for now. FXTM’s chief market strategist Hussein Sayed said the dollar would be driven by longer-term expectations. "The three rate hikes plotted on the Fed’s dot plot for 2018, were nowhere near markets’ expectations and the main risk facing the greenback is who will lead the US Federal Reserve when chairperson Janet Yellen departs." At 11...
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