South African government bonds were slightly stronger slightly before midday on Tuesday, bolstered by positive local news. Local data was positive, with inflation for February coming in slightly lower than forecast, at 4% opposed to a consensus forecast of 4.2%. The possible departure of South African Revenue Service commissioner Tom Moyane bolstered sentiment, analysts said, as a further sign the government was moving to remove officials seen as compromised. Bonds had rallied earlier on a weaker dollar, but with the South African government bond auction later this was likely to fade, Rand Merchant Bank bond analyst Deon Kohlmeyer said. This is ahead of the US Federal Reserve monetary policy announcement on Wednesday. Locally, focus is also on ratings agency Moody’s latest pronouncement on SA’s credit status, with the agency widely expected to refrain from downgrading the local currency rating. Should this occur, however, South African bonds will fall off key global bond indices, pr...
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