The South African bond market was relatively weaker‚ in line with the rand ahead of the release of the CPI.
The short-term focus is on the consumer price index (CPI)‚ which is anticipated to have moderated to 6.5% in March on a year on year basis‚ from 7% in February.
“The response from our bonds to the print will be a function of how the currency reacts‚” Rand Merchant Bank analyst Gordon Kerr said.
“A lower-than-expected print might put pressure on the currency as the market discounts any further rate hikes from the SARB.”
At 9.12am‚ the benchmark R186 bond was bid at 8.900% and offered at 8.890% from Tuesday’s close of 8.860%.
The middle-dated R207 was bid at 8.400% and offered at 8.375% from a previous close of 8.355%.
Bonds a tad weaker ahead of CPI
The South African bond market was relatively weaker‚ in line with the rand ahead of the release of the CPI.
The short-term focus is on the consumer price index (CPI)‚ which is anticipated to have moderated to 6.5% in March on a year on year basis‚ from 7% in February.
“The response from our bonds to the print will be a function of how the currency reacts‚” Rand Merchant Bank analyst Gordon Kerr said.
“A lower-than-expected print might put pressure on the currency as the market discounts any further rate hikes from the SARB.”
At 9.12am‚ the benchmark R186 bond was bid at 8.900% and offered at 8.890% from Tuesday’s close of 8.860%.
The middle-dated R207 was bid at 8.400% and offered at 8.375% from a previous close of 8.355%.
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