Rand flat as market focus remains on US-China talks
The resumption of trade negotiations could usher in some volatility during the week, while load-shedding is likely to sour sentiment locally
The rand was little changed against major global currencies on Monday morning, ahead of a few risk events this week.
At 9.40am the rand flat at R13.6071, while it had lost 0.11% to R15.4066/€ and 0.12% to R17.5881/£. The euro was flat at $1.1323.
At the same time the benchmark R186 government bond was bid at 8.650% from 8.635%, while the R207 was at 6.475% from 6.520%.
US and Chinese officials are expected to meet this week in Beijing, although there is still no sign US President Donald Trump will meet Chinese President Xi Jinping before a March 1 tariff deadline passes.
Locally, mining, manufacturing and retail sales data are all due this week. The resumption of load-shedding by Eskom also threatens to sour sentiment.
US-China trade talks always add a little risk, and the feeling in the market is that the recent emerging-market rally has run out of a little steam, said TreasuryOne senior currency dealer Andre Botha.
Global risk assets, including the rand, have found support so far in 2019, boosted by a dovish stance from the US Federal Reserve.
Last week, net foreign inflows into SA’s bond market totalled R1.5bn, compared with a R2.7bn outflow in the same week in 2018, according to JSE market statistics.
Net inflows so far in 2019 now total R14bn, compared with an outflow of R8bn in the same period in 2018.