South African bonds were weaker on Friday morning‚ as market focus shifts to the ANC policy conference.
Local economic data were expected to take a back seat to the ANC conference and global factors‚ analysts said.
The conference may get “interesting over the weekend and early next week‚” Nedbank analysts said.
Statistics SA is expected to release monthly trade figures for May at 2pm‚ with some expectation SA will post its fourth consecutive surplus.
On Friday Reserve Bank data showed SA’s private sector credit growth increased more than expected in May‚ suggesting an improvement in consumer spending and confidence.
Growth in extension of credit to the private sector — consumers and business — grew to an annualised 6.69% in May‚ its best level since September 2016‚ and compared with 5.9% in April‚ Reserve Bank data showed.
Bonds had tracked the rand to open stronger on Thursday morning‚ but quickly reversed those gains. US and European markets posted losses following comments from numerous central bankers this week — as well as key data releases — that suggest the tightening of monetary policy is on the way.
“The sudden surge into the euro has led to a bit of a risk-off scenario as investors enjoy the certainty that a developed market brings‚” TreasuryOne currency dealer Andre Botha said.
At 9.01am the benchmark R186 was bid at 8.78% from Thursday’s 8.69% and the R207 at 7.65% from 7.59%.
The rand was at R13.0604 to the dollar from R13.0225.
Bonds lose ground as ANC policy conference begins
South African bonds were weaker on Friday morning‚ as market focus shifts to the ANC policy conference.
Local economic data were expected to take a back seat to the ANC conference and global factors‚ analysts said.
The conference may get “interesting over the weekend and early next week‚” Nedbank analysts said.
Statistics SA is expected to release monthly trade figures for May at 2pm‚ with some expectation SA will post its fourth consecutive surplus.
On Friday Reserve Bank data showed SA’s private sector credit growth increased more than expected in May‚ suggesting an improvement in consumer spending and confidence.
Growth in extension of credit to the private sector — consumers and business — grew to an annualised 6.69% in May‚ its best level since September 2016‚ and compared with 5.9% in April‚ Reserve Bank data showed.
Bonds had tracked the rand to open stronger on Thursday morning‚ but quickly reversed those gains. US and European markets posted losses following comments from numerous central bankers this week — as well as key data releases — that suggest the tightening of monetary policy is on the way.
“The sudden surge into the euro has led to a bit of a risk-off scenario as investors enjoy the certainty that a developed market brings‚” TreasuryOne currency dealer Andre Botha said.
At 9.01am the benchmark R186 was bid at 8.78% from Thursday’s 8.69% and the R207 at 7.65% from 7.59%.
The rand was at R13.0604 to the dollar from R13.0225.
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