The South African bond market was firmer at midday on Wednesday amid global optimism that the “remain” camp will be victorious in Thursday’s UK referendum on its membership of the EU.
Latest opinion polls show support for the “remain” and “leave” camp to be neck and neck.
The bond market was also supported by better than expected inflation data.
The headline consumer price index (CPI) slowed further to 6.1% in May‚ against the consensus forecast of 6.4% from 6.2% in the previous month.
At 11.31am the benchmark R186 bond was bid at 8.920% and offered at 8.905% from the previous close of 8.980%.
Nedbank Corporate and Investment Bank (CIB) analysts said there has been significant offshore buying in the local bond market this week.
“Most of it was related to yesterday’s auction‚” Nedbank said. — Tiso Black Star Group Digital/BDlive
Bonds strengthen further on optimism over UK referendum
Latest opinion polls show support for the “remain” and “leave” camp to be neck and neck.
The bond market was also supported by better than expected inflation data.
The headline consumer price index (CPI) slowed further to 6.1% in May‚ against the consensus forecast of 6.4% from 6.2% in the previous month.
At 11.31am the benchmark R186 bond was bid at 8.920% and offered at 8.905% from the previous close of 8.980%.
Nedbank Corporate and Investment Bank (CIB) analysts said there has been significant offshore buying in the local bond market this week.
“Most of it was related to yesterday’s auction‚” Nedbank said. — Tiso Black Star Group Digital/BDlive
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