{"id":13547,"date":"2012-08-16T02:47:09","date_gmt":"2012-08-16T00:47:09","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/s-africa-bonds-weaken-retail-sales-surprise-higher\/"},"modified":"2012-08-16T02:47:09","modified_gmt":"2012-08-16T00:47:09","slug":"s-africa-bonds-weaken-retail-sales-surprise-higher","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bonds-weaken-retail-sales-surprise-higher\/","title":{"rendered":"S.Africa bonds weaken, retail sales surprise higher"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG<\/span> Aug 15 (Reuters) &#8211; South African bonds<br \/>\nweakened and yields edged higher on Wednesday after retail sales<br \/>\ndata surprised on the upside, suggesting the Reserve Bank might<br \/>\nnot need to cut interest rates further this year to stimulate<br \/>\ndemand.<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>The rand gave up some ground against the dollar, reflecting<br \/>\nmainly the greenback&#8217;s broad-based gains as the market scaled<br \/>\nback hopes for further stimulus measures from the U.S. Federal<br \/>\nReserve that would weaken the U.S. currency.<\/p>\n<p><span><\/span><\/p>\n<p>By 1636 GMT the rand traded at 8.2250 against the<br \/>\ndollar, down 0.33 percent from Tuesday&#8217;s close.<\/p>\n<p><span><\/span><\/p>\n<p>The yield on the heavily traded 14-year government bond<br \/>\n climbed 8.5 basis points to 7.575 percent while that<br \/>\nfor the three-year bonds ended the day flat at 5.68<br \/>\npercent after reaching a session high of 5.735 percent.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;It looks like offshore accounts are only interested in the<br \/>\nshorter dates at the moment and locals are sitting out,&#8221; a bond<br \/>\ntrader in Johannesburg said of the sell-off in longer-dated<br \/>\npaper.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The lack of participation may be exaggerating the moves.&#8221;<\/p>\n<p><span><\/span><\/p>\n<p>Bonds extended losses after Statistics South Africa reported<br \/>\nthat growth in retail sales accelerated to 8.3 percent<br \/>\nyear-on-year in June, outpacing market expectations for a 4.7<br \/>\npercent expansion.<\/p>\n<p><span><\/span><\/p>\n<p>The data suggested that while the rate of expansion in<br \/>\nconsumer activity would moderate in 2012, it would not be &#8220;sharp<br \/>\nor dramatic&#8221;, Stanlib analyst Kevin Lings said.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;It also suggests that there is less chance of a further<br \/>\ninterest rate cut later this year,&#8221; he added.<\/p>\n<p><span><\/span><\/p>\n<p>Bond yields plunged to historic lows last month after<br \/>\nthe Reserve Bank unexpectedly cut the benchmark repo rate to 5.0<br \/>\npercent, sounding a dovish policy tone that led the market to<br \/>\nprice in another reduction before year-end.<\/p>\n<p> (Reporting by Stella Mapenzauswa)<\/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>JOHANNESBURG Aug 15 (Reuters) &#8211; South African bonds weakened and yields edged higher on Wednesday after retail sales data surprised on the upside, suggesting the Reserve Bank might not need to cut interest rates further this year to stimulate demand. The rand gave up some ground against the dollar, reflecting mainly the greenback&#8217;s broad-based gains [&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-13547","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\/13547","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=13547"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13547\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13547"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13547"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13547"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}