MARKET WRAP: SA bond yields spike on US inflation concerns
Bond yields rise to one-week high and rand retreats to above R14/$ after report shows US inflation accelerates at fastest pace since 2008
SA bonds fell the most in almost two months and the rand weakened for the first time in six days after a report showed US inflation jumped the most since 2008, sparking concern that rising prices may stifle growth in the world’s biggest economy and dim demand for emerging-market assets.
The yield on SA’s benchmark R2030 bond rose 12 basis points to 9.08%, the highest closing level in a week. Since bond yields move inversely to their prices, it indicated a falling market, which was mirrored in the rand retreating to well above R14/$. The JSE all share index closed below 68,000 index points, after earlier trading as high as 68,402.98...