* Rand, bonds steady with weaker bias
* Inflation-linked bond sale results at 0900 GMT
* Treasury bills auction results out at 1000 GMT
JOHANNESBURG, Feb 3 (Reuters) – South Africa’s rand
eased slightly against the dollar in early Friday trade as
investors’ appetite for riskier emerging market assets waned
after disappointing economic data out of Asia.
Government bonds also showed weakened ahead of the sale of
domestic government paper later in the session.
The rand was trading at 7.6550 by 0637 GMT, a shade
weaker than a 7.64 close in New York. The currency hit a
five-month high of 7.605 during on Thursday.
China reported disappointing services data early on Friday,
putting a slight dent in risk appetite.
However, the rand and other emerging market assets may
bounce back if U.S. jobs data paint a positive picture for the
world’s biggest economy and Greek government talks with private
creditors make headway.
“Even though the rand has recovered aggressively over a
relatively short space of time, if global risk appetite
accelerates further, then rand bulls could realistically look
for a move down to 7.50, if not 7.32, in the near term,” Absa
Capital said.
Continued…
