* CPI, PMI, retail sales softer than expected
* Bond yields down across curve
* Rand retreats after hitting 6-week high
By Phumza Macanda
JOHANNESBURG, Jan 18 (Reuters) – South African
government bonds firmed on Wednesday, bringing yields down
across the curve as the market trimmed its rate increase
expectations after softer than expected data.
Inflation came in lower than expected at 6.1 percent
year-on-year in December. PMI data indicated the manufacturing
sector was still sluggish while retail sales data suggested
consumer spending was not growing as fast as previously
anticipated.
Yields were down nine basis points on both the 2015
and the 2026 benchmark bonds to 6.68 percent
and 8.435 percent respectively.
“The CPI number and lower PMI and lower retail sales number
have all been good for bonds,” said Ian Scott, bond dealer at
Stanlib.
“There’s no urgent need to hike rates soon, monetary policy
is going to remain sideways for longer,” he added.
Continued…
