INVESTORS’ anticipation of South African Reserve Bank and US Fed’s monetary policy decisions later in the week held bonds steady in late trade on Monday.
Changes in interest rates are big drivers of trade in currencies and bonds.
At 3.27pm, the benchmark R186 bond was bid at 9.125% and offered at 9.105% from a previous close of 9.100%.
The middle-dated R207 was bid and offered at 8.620% from a Friday close of 8.625%.
In its daily economic report, NKC Research said US policy makers were likely to give some clues about the trajectory of rate increases this year, while the South African Reserve Bank was expected to raise the repo rate 25 basis points to 7%, though NKC economists suspected the Reserve Bank would hold off for this round.
Nedbank CIB analysts said, however, that an increase in US rates could increase the pressure on South African Reserve Bank governor Lesetja Kganyago to follow suit. Nedbank’s view remained flat, however.
The Bank of Japan’s rate announcement was due on Tuesday, followed by the Fed’s decision on Wednesday and the South African Reserve Bank and Bank of England announcements on Thursday.
Picture: BUSINESS DAY
INVESTORS’ anticipation of South African Reserve Bank and US Fed’s monetary policy decisions later in the week held bonds steady in late trade on Monday.
Changes in interest rates are big drivers of trade in currencies and bonds.
At 3.27pm, the benchmark R186 bond was bid at 9.125% and offered at 9.105% from a previous close of 9.100%.
The middle-dated R207 was bid and offered at 8.620% from a Friday close of 8.625%.
In its daily economic report, NKC Research said US policy makers were likely to give some clues about the trajectory of rate increases this year, while the South African Reserve Bank was expected to raise the repo rate 25 basis points to 7%, though NKC economists suspected the Reserve Bank would hold off for this round.
Nedbank CIB analysts said, however, that an increase in US rates could increase the pressure on South African Reserve Bank governor Lesetja Kganyago to follow suit. Nedbank’s view remained flat, however.
The Bank of Japan’s rate announcement was due on Tuesday, followed by the Fed’s decision on Wednesday and the South African Reserve Bank and Bank of England announcements on Thursday.
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