{"id":13806,"date":"2012-08-23T03:05:52","date_gmt":"2012-08-23T01:05:52","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/s-africa-bonds-supported-by-lower-inflation\/"},"modified":"2012-08-23T03:05:52","modified_gmt":"2012-08-23T01:05:52","slug":"s-africa-bonds-supported-by-lower-inflation","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-bonds-supported-by-lower-inflation\/","title":{"rendered":"S.Africa bonds supported by lower inflation"},"content":{"rendered":"

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

JOHANNESBURG<\/span> Aug 22 (Reuters) – South African government
\nbonds extended their rally on Wednesday after inflation slowed
\nmore than expected in July, while the rand was slightly weaker.<\/span><\/p>\n

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

Consumer price inflation declined to 4.9 percent
\nyear-on-year in July, from 5.5 percent in June, Statistics South
\nAfrica said on Wednesday, lower than the 5.2 percent forecast by
\neconomists in a Reuters poll.<\/p>\n

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

The inflation figure, which raised expectations of further
\nrate cuts, bolstered government bonds, with the yield on the
\n2015 bond declining to a two-week low of 5.52 percent.
\nThat on the 2021 bond fell to 6.78 percent, its lowest
\nin more than a week.<\/p>\n

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

“We got better than expected CPI,” said Garth Klintworth,
\nhead of fixed income, currencies and commodities at Absa
\nCapital. “This reconfirms the possibility of more monetary
\npolicy easing … Bonds (yields) are lower on the back of that.”<\/p>\n

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

South Africa’s Reserve Bank cut its benchmark interest rate
\nby 50 basis points to a record low of 5 percent in July, citing
\nfears about the impact of the global economic downturn on
\nAfrica’s largest economy.<\/p>\n

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

The rand was down 0.5 percent at 8.3030 to the dollar at
\n1631 GMT, reversing the previous session’s gains. It closed at
\n8.2625 in New York on Tuesday.<\/p>\n

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

“We’re really just trading around flows. There’s no specific
\ntheme that you can point the weakness to,” said Klintworth. “I
\nthink we’re in a broad range of 8.20-8.55.”<\/p>\n

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

The rand’s prospects over the next three months look
\npromising as global sentiment is likely to improve and as South
\nAfrica reaps the full benefits of its inclusion in Citi’s World
\nGovernment Bond Index in October, analysts at Absa Capital said
\nin a research note.<\/p>\n

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

“We believe the strong portfolio inflows into the SA bond
\nmarket in June and July, as well as the subsequent profit-taking
\nin August, have mirrored the appetite for emerging market bonds
\nin general,” the note said. “Hence, we believe the portfolio
\ninflows associated with SA’s inclusion in the WGBI could still
\nbe en route.”<\/p>\n

(Reporting by Tosin Sulaiman; editing by Stephen Nisbet)<\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

JOHANNESBURG Aug 22 (Reuters) – South African government bonds extended their rally on Wednesday after inflation slowed more than expected in July, while the rand was slightly weaker. Consumer price inflation declined to 4.9 percent year-on-year in July, from 5.5 percent in June, Statistics South Africa said on Wednesday, lower than the 5.2 percent forecast […]<\/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-13806","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\/13806","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=13806"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13806\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}