SA bonds slightly firmer as market eyes Donald Trump’s decision on Iran
Bonds slightly cheered by dollar weakness at the weekend, while the US’s possible exit from the nuclear deal with Iran is in the spotlight this week
South African government bonds were firmer on Monday morning, as the rand hovered around R12.50/$, as markets cautiously watched risk events this week. The dollar had backtracked slightly at the weekend, while a strong performance on Wall Street on Friday added some risk-on sentiment on Monday morning. However, analysts cited the US-China trade talks, and a looming decision by the White House on a 2015 nuclear deal with Iran as reasons investors may be cautious. "The key for this week will be the fact that most of the interesting events happen towards the end of the week. Trump’s decision to pull out of the Iran deal and US inflation should all result in decent volatility should they surprise the market," said Rand Merchant Bank bond analyst Gordon Kerr. Locally, the most interesting data releases are on Thursday, while wage talks between public servants and the state are expected to resume only on May 14. The wage talks are being closely watched, as a protracted strike or a signifi...
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