South African bonds were firmer on Wednesday morning, despite the weaker rand, ahead of inflation data for October.The local consumer price index is expected to have risen 4.8% in October this year compared with the same month in 2016, a slight deceleration from September’s 5.1%.Despite this, the Reserve Bank is widely expected to keep interest rates unchanged on Thursday, when it announces its latest monetary policy stance.The rand had firmed late on Tuesday following the news of the resignation of Robert Mugabe, while bonds had also found both international and local support on the day.Nonresidents, and to a lesser extent locals, participated meaningfully in Tuesday’s government bond auction, while firmer bonds on Wednesday morning were to be expected after the rand’s late strengthening through R14/$, said Sasfin Securities Bond analysts.At 9.30am the R186 was bid at 9.42% from 9.46% and the R207 at 8.115% from 8.165%.The rand was at R13.9824 to the dollar from R13.9706.The US 10-...
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