South African bonds were stable shortly before midday on Tuesday, with investor focus squarely on Wednesday’s medium-term budget policy statement, and global event risks. Locally, analysts warn that the medium-term budget speech’s expected announcement that SA’s budget deficit will increase will lead to rand volatility. International focus is on the European Central Bank (ECB) meeting on Thursday, when policy makers are widely expected to announce further monetary policy tapering. Some market participants are predicting a bolder ECB response than previously anticipated, speculating a reduction of monthly asset purchases to ¤20bn, starting in January 2018, rather than a larger figure of ¤30bn, said Franklin Templeton analysts. The announcement as to who will replace US Federal Reserve chairperson Janet Yellen is also expected in coming days, while Friday sees US economic growth numbers for the third quarter. Bonds have been stable in previous sessions despite a relatively volatile ra...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.