South African bonds were marginally firmer at midday on Monday as the rand remained flat amid cautious trade after the deadly attacks in Paris‚ Beirut and Baghdad at the weekend led to a more risk-averse environment.
At 11.46am‚ the benchmark R186 was bid at 8.600% and offered at 8.590% from Friday’s close of 8.610%.
The middle-dated R207 was bid at 7.980% and offered at 7.970% from a previous close of 7.995%.
Market participants are awaiting the release of US inflation figures on Tuesday‚ the minutes from the October US Federal Reserve meeting and the local monetary policy committee meeting for further direction.
“Thursday’s monetary policy committee meeting will be an interesting one as it is expected that the statement will be hawkish‚ but that the Reserve Bank will refrain from hiking rates until January‚”
“The rand looks overdone at these levels‚ but then again has looked overdone for most of this year‚ we believe there is room for gains but that the current environment doesn’t lend itself to a meaningful rand rally just yet‚” he said.
Bonds slightly firmer amid cautious trade
At 11.46am‚ the benchmark R186 was bid at 8.600% and offered at 8.590% from Friday’s close of 8.610%.
The middle-dated R207 was bid at 7.980% and offered at 7.970% from a previous close of 7.995%.
Market participants are awaiting the release of US inflation figures on Tuesday‚ the minutes from the October US Federal Reserve meeting and the local monetary policy committee meeting for further direction.
“Thursday’s monetary policy committee meeting will be an interesting one as it is expected that the statement will be hawkish‚ but that the Reserve Bank will refrain from hiking rates until January‚”
“The rand looks overdone at these levels‚ but then again has looked overdone for most of this year‚ we believe there is room for gains but that the current environment doesn’t lend itself to a meaningful rand rally just yet‚” he said.
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