Local bonds steady as global yields continue to fall
The euro came under some pressure following disappointing growth data out of the UK; locally, S&P’s SA rating is due at about midnight
South African government bonds were steady on Friday afternoon as US treasuries firmed further in safe-haven trade, and the local market awaited a S&P Global Ratings’ decision due at midnight.In its previous assessment in November, S&P kept SA’s debt at junk status, but changed its outlook from negative to stable, implying that no further downgrade was expected, analysts said.Yields on the benchmark US 10-year treasury fell earlier in the week after the US Federal Reserve’s latest minutes revealed a less hawkish stance with two further hikes likely this year, instead of the recently mooted three.An unsettled global environment also supported US treasuries, with the euro losing further momentum against the dollar on concern of an escalating trade war following US President Donald Trump’s threat to increase tariffs on imported vehicles.A firmer dollar brushed off news of a canceled summit between the US and North Korea, finding some support after North Korean leader Kim Jong-un said h...
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