South African government bonds were weaker on Wednesday morning, with the rand retreating to R12.40/$, as yields on US treasuries climbed.US bond yields have spiked sharply on inflationary concerns, brought about by higher oil prices.The increasing demand for US debt has prompted dollar strength, put global equities under pressure, and has prompted caution among investors.Locally, however, news was upbeat on Wednesday, with the FNB/BER consumer confidence index (CCI) rising by 34 index points to 26 in the first quarter of 2018. This is a record high, and the largest quarterly increase since 1982.Although much of the market direction would be determined by offshore factors, a keen eye would also be kept on local trade-union activity, Sasfin Securities bond analysts said.Public servants are currently in wage negotiations with the state, and have warned of a "total shutdown" of government services if the government does not accommodate their demands.Public-sector unions have demanded i...
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.