South African bonds were slightly weaker on Wednesday morning as investors await the US Federal Reserve’s policy statement later in the day.
The Fed is not expected to change its monetary policy of gradually increasing interest rates. Any changes to its policy will‚ however‚ be analysed for clues on the timing of future rate increases and hints on when it will start shrinking its balance sheet.
Dow Jones Newswires reported that a bout of selling hit the US government bond market on Tuesday as investors hedged their bets ahead of the conclusion of the Fed’s meeting.
Momentum SP Reid analysts said the outcome of the policy meeting and the accompanying statement could "influence market tonality".
"US 10-year treasury yields have exhibited a reversal in the past 24 hours‚ a development which will require attention."
At 9am the R186 was bid at 8.575% from Tuesday’s 8.540% and the R207 at 7.350% from 7.310%.
US 10-year treasuries were bid at 2.3205% from 2.2556%.
-TimesLIVE
Source: TMG Digital.
Bonds slightly weaker ahead of Fed’s policy statement
The Fed is not expected to change its monetary policy of gradually increasing interest rates. Any changes to its policy will‚ however‚ be analysed for clues on the timing of future rate increases and hints on when it will start shrinking its balance sheet.
Dow Jones Newswires reported that a bout of selling hit the US government bond market on Tuesday as investors hedged their bets ahead of the conclusion of the Fed’s meeting.
Momentum SP Reid analysts said the outcome of the policy meeting and the accompanying statement could "influence market tonality".
"US 10-year treasury yields have exhibited a reversal in the past 24 hours‚ a development which will require attention."
At 9am the R186 was bid at 8.575% from Tuesday’s 8.540% and the R207 at 7.350% from 7.310%.
US 10-year treasuries were bid at 2.3205% from 2.2556%.
-TimesLIVE
Source: TMG Digital.
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