* Inflation expected to breach Reserve Bank target
* Rand steady, seen range-bound
JOHANNESBURG, March 20 (Reuters) – South Africa’s bonds
weakened and the rand steadied on Tuesday as trading was thin
ahead of a public holiday and the release of inflation later in
the week.
The government will release employment statistics for the
fourth quarter of last year at 0930 GMT, providing details on
the labour market in Africa’s largest economy.
The rand was trading at 7.5418 versus the greenback
at 0601 GMT, little changed from Monday’s close of 7.5432.
Treasury will auction 2.1 billion rand ($279 million) of
bonds spread equally between the 2018, 2026
and 2031 bonds at 0900 GMT.
Local dealers expect participation to be lower than in
previous auctions due to the holiday.
“There is a little bit reluctance to hold on to risk given
that there is a holiday between now and CPI release,” said
Daniel Sabiston, a bond dealer at Absa Capital.
Markets will be closed on Wednesday for the holiday.
February CPI is set for release on Thursday and is expected to
show that inflation had breached the Reserve Bank’s 6 percent
target.
Continued…
