Bonds steady on inflation data as global bond yields fall
Investors are keeping away from risky assets on fear of further contagion in emerging markets, following renewed sharp falls in the Turkish lira
South African government bonds were largely unchanged on Wednesday afternoon amid global safe-haven trade, as the rand lost more than 10c against the dollar in intraday trade.Investors turned to bonds in safe-haven trade on the day. Fear about further contagion in emerging markets, following renewed sharp falls in the Turkish lira, kept investors away from risky assets.German bund yields plummeted 10% while yields on the benchmark 10-year US bond threatened to test the 3% level again, after rising to a seven-year high of 3.12% earlier.Sentiment was also negative amid indications that trade talks between the US and China had hit a snag, with President Donald Trump tweeting that he was not happy with the trade negotiations so far.That was despite earlier comments by US officials that the talks had gone well thus far, with China stating that it would cut the import tariff charged to car manufacturers to 15%.The market is now awaiting the release of minutes from the US Federal Reserve’s...
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