South African government bonds were stronger on Thursday morning, benefiting from overnight gains in the rand, following a move by the Turkish central bank to raise its lending rate 3% to 16.5%. "What a difference an emergency hike of 300 basis points in Turkey does to the market. This interest-rate hike was the desperate measure that the Turkish central bank resorted to curb the rampant inflation that’s currently causing a bit of havoc in Turkey," said TreasuryOne currency dealer Andre Botha. Markets were also digesting US Federal Reserve minutes, with the world’s most influential central bank signalling that it would raise interest rates in June, with two more increases pencilled in for 2018. Local focus remains on the Reserve Bank, which will announce its latest stance on monetary policy at about 3pm. No change in rates is expected, but analysts expect the tone from the Bank to turn hawkish, due to recent rand weakness. At 10am, the benchmark R186 government bond was bid at 8.45%...
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.