The rand was slightly firmer just before midday, after the release of better-than-expected consumer inflation data for November. Statistics SA reported that the consumer price index (CPI) eased to 4.6% in November from 4.8% in October. Inflation was generally expected to ease slightly, but surpassed the consensus 4.7%. The rand was firmer ahead of the CPI announcement trading at R13.6447 to the dollar at 9.01am, and gained slightly after the release. An uptick in inflation is negative for fixed-income assets such as bonds as it reduces their future returns. South African benchmark government bonds were steady, with the benchmark 10-year bonds bid at 9.29% from the previous day’s 9.26% Markets now await the much-anticipated US interest-rate announcement later in the day, with investors focused more on what is expected to be a hawkish statement from the Federal Reserve members, and their forecast on future interest-rate increases. Most emerging-market currencies were slightly firmer a...
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