MARKET WRAP: Bonds recover some ground after big initial sell-off
Fed’s unexpectedly hawkish comments on inflation spook investors, though the rand holds streaky below R15/$
22 March 2022 - 20:02
The local bond market felt the heat on Tuesday as the US Federal Reserve’s unexpectedly hawkish tone on inflation spooked investors and led to a flood of selling.
Overnight comments by Fed chair Jerome Powell that the central bank was prepared to raise interest rates by half a percentage point at its next meeting if needed, saw the yield on the local benchmark R2030 bond jump as much as 20.5 basis points to 9.86% — the biggest increase since March 8 — before easing to 9.78% by the close of trade...
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