{"id":11894,"date":"2012-06-28T00:00:03","date_gmt":"2012-06-27T22:00:03","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/south-africa-bond-yields-rally-rand-undecided\/"},"modified":"2012-06-28T00:00:03","modified_gmt":"2012-06-27T22:00:03","slug":"south-africa-bond-yields-rally-rand-undecided","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/south-africa-bond-yields-rally-rand-undecided\/","title":{"rendered":"South Africa bond yields rally, rand undecided"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Bonds gain on lower global, domestic inflation<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Rand reverses gains on EU scepticism<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, June 27<\/span> (Reuters) &#8211; South African government<br \/>\nbond yields rallied towards all-time lows on Wednesday as global<br \/>\nconsumer inflation showed signs of easing, raising prospects of<br \/>\nfurther monetary easing.<\/p>\n<p><span><\/span><\/p>\n<p>Yields on the government&#8217;s 3-year benchmark and the longer<br \/>\ndated 14-year paper dipped five basis points to 6.02 percent and<br \/>\n8.015 percent respectively, bringing them closer to historic<br \/>\nlows.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The prospects of even lower rates in the core markets<br \/>\nmeaning the U.S. and Europe are extremely high, so the value<br \/>\npreposition in investing in rand rates is definitely strong,&#8221;<br \/>\nsaid Luis Costa, head of CEEMEA FX and debt strategy at Citi.<\/p>\n<p><span><\/span><\/p>\n<p>Last week local consumer inflation slowed in May, returning<br \/>\nto the central bank&#8217;s 3-6 percent target range at 5.7 percent<br \/>\nyear-on-year and raising expectations the central bank may have<br \/>\nroom to cut interest rates further which are already at<br \/>\nthree-decade lows.<\/p>\n<p><span><\/span><\/p>\n<p>With inflation moderating while interest rates are close to<br \/>\nzero in the developed world, investors would take a liking to<br \/>\nSouth African bonds even if a cut to a 5.5 repo rate percent was<br \/>\nimminent.<\/p>\n<p><span><\/span><\/p>\n<p>The rand gave up earlier gains to trade flat at 8.42 against<br \/>\nthe dollar by 1630 GMT. It was weighed by pessimism about the<br \/>\nprospect of a European summit resolving the debt woes of the<br \/>\nregion, which is South Africa&#8217;s largest trading partner.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;We have quite a significant event risk coming up this<br \/>\nweek,&#8221; said Sean McCalgan, market analyst at ETM, referring to<br \/>\nthe Europe summit.<\/p>\n<p> (Reporting by Vuyani Ndaba; Editing by Ed Stoddard)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Bonds gain on lower global, domestic inflation * Rand reverses gains on EU scepticism JOHANNESBURG, June 27 (Reuters) &#8211; South African government bond yields rallied towards all-time lows on Wednesday as global consumer inflation showed signs of easing, raising prospects of further monetary easing. Yields on the government&#8217;s 3-year benchmark and the longer dated [&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-11894","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\/11894","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=11894"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11894\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=11894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=11894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=11894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}