The South African bond market was confined to a narrow trading range on Wednesday‚ with few catalysts to push the market in either direction.
A batch of US data‚ including retail sales and inflation‚ will take centre stage later in the week as traders continue to ponder the timing of the next interest-rate increase in the world’s biggest economy.
Analysts said bonds were likely to continue to swing between small losses and gains ahead of the Federal Reserve’s federal open market committee meeting‚ based on the above-mentioned releases. This is in line with the Fed’s stated position that any rate increase would be data-dependent.
The US consumer price index was expected to have picked up to an annual rate of 0.9% August‚ according to Trading Economics‚ up from 0.8% in July.
An increase in US rates would be likely to strengthen the dollar and hurt emerging-market currencies and bonds.
The yield on the benchmark R186 was 8.680% in afternoon trade‚ from Tuesday’s 8.705%.
The US Treasury 10-year note was last offering 1.6986% from Tuesday’s 1.7281%‚ while the UK 10-year gilt was at 0.8081% from 0.8150%.
Bonds trade in narrow range ahead of US data release
The South African bond market was confined to a narrow trading range on Wednesday‚ with few catalysts to push the market in either direction.
A batch of US data‚ including retail sales and inflation‚ will take centre stage later in the week as traders continue to ponder the timing of the next interest-rate increase in the world’s biggest economy.
Analysts said bonds were likely to continue to swing between small losses and gains ahead of the Federal Reserve’s federal open market committee meeting‚ based on the above-mentioned releases. This is in line with the Fed’s stated position that any rate increase would be data-dependent.
The US consumer price index was expected to have picked up to an annual rate of 0.9% August‚ according to Trading Economics‚ up from 0.8% in July.
An increase in US rates would be likely to strengthen the dollar and hurt emerging-market currencies and bonds.
The yield on the benchmark R186 was 8.680% in afternoon trade‚ from Tuesday’s 8.705%.
The US Treasury 10-year note was last offering 1.6986% from Tuesday’s 1.7281%‚ while the UK 10-year gilt was at 0.8081% from 0.8150%.
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