South African government bonds were steady ahead of the budget presentation at 2pm.Analysts expect the rand and bonds to firm on positive news coming out of the budget, but trade may turn volatile if there are some surprises in the quest to plug the R50bn fiscal shortfall.Consumer inflation moderated to 4.4% in January from 4.7% in December, raising hopes of an interest-rate cut by the Reserve Bank in March. The market consensus was for 4.2%.Inflation is expected to moderate further and remain below 5% in the first few months of 2018, before quickening once more to above 5% in the latter part of the year as the benefit of lower food prices recedes and oil prices rise from current levels, Nedbank analysts said.The volatile rand remains the key factor to watch, Nedbank said. "We predict a 25 basis-points rate reduction in March."At 11.30am, the benchmark R186 bond was unchanged at 8.09% while the R207 was bid at 6.73% from 6.745%.The rand was at R11.7321 to the dollar from R11.7301.Gl...
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