{"id":12572,"date":"2012-07-19T13:02:38","date_gmt":"2012-07-19T11:02:38","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/s-africa-govt-bonds-up-small-chance-of-rate-cut\/"},"modified":"2012-07-19T13:02:38","modified_gmt":"2012-07-19T11:02:38","slug":"s-africa-govt-bonds-up-small-chance-of-rate-cut","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-govt-bonds-up-small-chance-of-rate-cut\/","title":{"rendered":"S.Africa govt bonds up, small chance of rate cut"},"content":{"rendered":"

\t\t<\/span><\/p>\n

JOHANNESBURG, July 19<\/span> (Reuters) – South African government
\nbonds rallied and yields fell in early Thursday trade, still
\nsupported by strong offshore demand while some local market
\nplayers were pricing in a slight possibility of a domestic
\ninterest rate cut.<\/span><\/p>\n

<\/span><\/p>\n

The rand was on a firmer footing against the dollar than in
\nrecent days as global investor risk appetite ticked higher, but
\ncould turn weaker as concerns about euro zone debt woes persist.<\/p>\n

<\/span><\/p>\n

The yield on the three-year benchmark fell by 5.5
\nbasis points to 5.81 percent while the 14-year paper
\nwas down 7.5 basis points at 7.415 percent.<\/p>\n

<\/span><\/p>\n

“It’s probably just more guys having expectations around a
\nrate cut and the rand is a little bit stronger so it’s good for
\nbonds,” said Ian Scott, portfolio manager at Stanlib.<\/p>\n

<\/span><\/p>\n

“There are definitely some market players out there are
\nlooking for a rate cut.”<\/p>\n

<\/span><\/p>\n

Of 23 economists polled by Reuters last week, 21 expected
\nthe Reserve Bank to keep the repo rate – the rate at which it
\nlends to commercial banks – at 5.5 percent, with only two seeing
\na 50 basis point cut.<\/p>\n

<\/span><\/p>\n

Governor Gill Marcus will announce the decision at 1300 GMT.<\/p>\n

<\/span><\/p>\n

In the poll, seven economists said a 50 basis point cut was
\nin the offing before year-end to spur growth, but 16 saw the
\ncentral bank maintaining its “no change” of the last 20 months
\nfor the rest of the year.<\/p>\n

<\/span><\/p>\n

The rand was a touch firmer at 8.1535 to the dollar
\ncompared with Wednesday’s close at 8.16, in line with a steadier
\neuro, which it closely tracks because of South Africa’s strong
\ntrading ties with the euro zone.<\/p>\n

<\/span><\/p>\n

“Levels closer to 8.1000 are now looking possible, and
\nwhilst we would look at such a dip as an opportunity to buy
\ndollars, one cannot exclude the possibility that the rand
\noutperforms in the near term,” Tradition Analytics said in a
\nnote.<\/p>\n

(Reporting by Stella Mapenzauswa; Editing by Ed Cropley)<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

JOHANNESBURG, July 19 (Reuters) – South African government bonds rallied and yields fell in early Thursday trade, still supported by strong offshore demand while some local market players were pricing in a slight possibility of a domestic interest rate cut. The rand was on a firmer footing against the dollar than in recent days as […]<\/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-12572","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\/12572","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=12572"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12572\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}