{"id":11673,"date":"2012-06-20T23:36:22","date_gmt":"2012-06-20T21:36:22","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/s-africa-bond-yields-at-historic-lows-as-cpi-slows\/"},"modified":"2012-06-20T23:36:22","modified_gmt":"2012-06-20T21:36:22","slug":"s-africa-bond-yields-at-historic-lows-as-cpi-slows","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bond-yields-at-historic-lows-as-cpi-slows\/","title":{"rendered":"S.Africa bond yields at historic lows as CPI slows"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Market sees chance of domestic rate cut this year<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Rand steady, market eyes on U.S. Fed meeting<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, June 20<\/span> (Reuters) &#8211; South African government<br \/>\nbonds rallied on Wednesday and yields wilted to all-time lows<br \/>\nafter consumer inflation data surprised to the downside, backing<br \/>\nthe case for the Reserve Bank to cut domestic interest rates<br \/>\nlater this year.<\/p>\n<p><span><\/span><\/p>\n<p>The rand hovered near its overnight closing levels, coming<br \/>\noff earlier five-week highs as lingering uncertainty over<br \/>\nEurope&#8217;s debt problems keeps investors jittery.<\/p>\n<p><span><\/span><\/p>\n<p>The yield on the three-year paper fell 8 basis<br \/>\npoints on the day to 5.97 percent while that for the 14-year<br \/>\nbond was down 6.5 basis points at 7.96 percent.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;Continued support from offshore buyers for South African<br \/>\nbonds, which looks like will be around until October, coupled<br \/>\nwith inflation surprising to the downside today has given bonds<br \/>\na bidding tone,&#8221; said Steve Arnold, a bond trader at Investec.<\/p>\n<p><span><\/span><\/p>\n<p>Consumer inflation slowed more than expected in May, coming<br \/>\nback into the central bank&#8217;s 3-6 percent target range at 5.7<br \/>\npercent year-on-year and raising expectations the central bank<br \/>\nmay have room to cut interest rates further from current three<br \/>\ndecade lows.<\/p>\n<p><span><\/span><\/p>\n<p>Foreigners have also been steadily accumulating local debt<br \/>\nin readiness for South Africa&#8217;s inclusion in Citigroup&#8217;s World<br \/>\nGovernment Bond Index from October.<\/p>\n<p><span><\/span><\/p>\n<p>Analysts say the inclusion could result in portfolio inflows<br \/>\nof up to 9 billion rand ($1.1 billion).<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Market sees chance of domestic rate cut this year * Rand steady, market eyes on U.S. Fed meeting JOHANNESBURG, June 20 (Reuters) &#8211; South African government bonds rallied on Wednesday and yields wilted to all-time lows after consumer inflation data surprised to the downside, backing the case for the Reserve Bank to cut domestic [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-11673","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=11673"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11673\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=11673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=11673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=11673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}