South African bonds were steady, tracking US treasuries as investors remain cautious ahead of the outcome of the US Federal Reserve’s policy statement later in the day. Markets have already priced in the 25 basis point rate increase and investors are more interested in hearing about the pace of interest rate increases in 2018. On the local front, consumer inflation for November is expected to ease to 4.7% year on year from 4.8% in October, which would be for the eighth consecutive month, keeping inflation below the 6% upper-target level. Trade in the local bond market has been thin, with yields trading in narrow ranges, however, demand at Tuesday’s bond auction was firm. Rand Merchant Bank analyst Deon Kohlmeyer said demand at the last auction of 2017 was strong, amounting to R9.5bn, from last week’s R8.2bn. Kohlmeyer said that despite the positive sentiment from the auction, bond yields ended Tuesday higher. A weaker rand, uncertainty about a market-friendly outcome to the ANC conf...
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.