{"id":12586,"date":"2012-07-20T01:03:27","date_gmt":"2012-07-19T23:03:27","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/update-2-s-africa-bond-yields-hit-new-lows-after-surprise-rate-cut\/"},"modified":"2012-07-20T01:03:27","modified_gmt":"2012-07-19T23:03:27","slug":"update-2-s-africa-bond-yields-hit-new-lows-after-surprise-rate-cut","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-2-s-africa-bond-yields-hit-new-lows-after-surprise-rate-cut\/","title":{"rendered":"UPDATE 2-S.Africa bond yields hit new lows after surprise rate cut"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Bonds yields hit new lows, forward rate agreements price<br \/>\nin more cuts<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Rand weakest in group of emerging currencies vs dollar<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG, July 19<\/span> (Reuters) &#8211; South African government<br \/>\nbond yields hit record lows on Thursday while the rand weakened<br \/>\nagainst the dollar after the central bank unexpectedly cut its<br \/>\nkey lending rate and sounded a dovish tone on inflation while<br \/>\ntrimming its economic growth forecasts.<\/p>\n<p><span><\/span><\/p>\n<p>The Reserve Bank cut the repo rate by 50 basis points to 5.0<br \/>\npercent, surprising the market after 19 months of no change to<br \/>\nrates. Only two out of 23 economists polled by Reuters had<br \/>\nanticipated the cut.<\/p>\n<p><span><\/span><\/p>\n<p>Commercial banks followed suit and cut their lending rates<br \/>\nto consumers by the same margin to 8.5 percent.<\/p>\n<p><span><\/span><\/p>\n<p>Yields on the front end of the curve extended earlier<br \/>\ndeclines to record lows after the rate cut and the central<br \/>\nbank&#8217;s lower inflation forecasts, widening the yield spread<br \/>\nbetween the three- and 14-year bonds by 8 basis points.<\/p>\n<p><span><\/span><\/p>\n<p>The rand was the worst performer in a basket of emerging<br \/>\nmarket currencies trading against the dollar after the<br \/>\nunexpected cut in interest rates underscored a bleak outlook for<br \/>\nglobal and economic growth.<\/p>\n<p><span><\/span><\/p>\n<p>The unit was down 0.2 percent to 8.1780 to the<br \/>\ndollar at 1620 GMT, recovering from its initial reaction to 8.20<br \/>\nafter the rate cut, and off a 8.16 close in New York on<br \/>\nWednesday.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;This was based not solely on domestic factors but the<br \/>\ncondition of the globe. It is in line with what we have seen<br \/>\nfrom other central banks in terms of combating lower global<br \/>\ngrowth and assisting with liquidity provision where they can,&#8221;<br \/>\nsaid Garth Klintworth from Absa Capital.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Bonds yields hit new lows, forward rate agreements price in more cuts * Rand weakest in group of emerging currencies vs dollar JOHANNESBURG, July 19 (Reuters) &#8211; South African government bond yields hit record lows on Thursday while the rand weakened against the dollar after the central bank unexpectedly cut its key lending rate [&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-12586","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\/12586","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=12586"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12586\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}