{"id":13842,"date":"2012-08-24T03:08:35","date_gmt":"2012-08-24T01:08:35","guid":{"rendered":"http:\/\/www.myza.co.za\/08\/s-africas-bond-yields-retreat-on-stimulus-hopes\/"},"modified":"2012-08-24T03:08:35","modified_gmt":"2012-08-24T01:08:35","slug":"s-africas-bond-yields-retreat-on-stimulus-hopes","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africas-bond-yields-retreat-on-stimulus-hopes\/","title":{"rendered":"S.Africa’s bond yields retreat on stimulus hopes"},"content":{"rendered":"

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

JOHANNESBURG<\/span> Aug 23 (Reuters) – South African government
\nbonds rallied and yields fell on Thursday on expectations the
\ncentral banks of China and the U.S. could loosen policy further
\nto help their flagging economies, boosting demand for higher
\nyielding emerging market debt.<\/span><\/p>\n

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

But underlying worries of contagion from the debt problems
\nin the euro zone continued to weigh on the rand, which gave up
\nearlier gains brought on by euphoria over U.S. Federal Reserve
\nminutes suggesting further stimulus for the world’s biggest
\neconomy.<\/p>\n

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

The yield for the benchmark bond due in 2015 ended
\nthe day three basis points lower at 5.485 percent while that for
\nthe longer-dated 2026 bond fell 4.5 basis points to
\n7.47 percent.<\/p>\n

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

“The FOMC minutes last night gave a clearer indication that
\nthe U.S. is still prepared to look at supporting the market and
\nthere is also a possibility the People’s Bank of China will step
\nin and give more support,” said Marten Banninga, head of bond
\ntrading at WWC Securities.<\/p>\n

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

“If they’re still prepared to supply money to the market it
\nmeans cheap money that you get to buy higher yield. It’s the
\ncarry trade scenario where cheap money will always chase
\nyields.”<\/p>\n

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

Bonds have also been buoyed by data on Wednesday that showed
\ninflation slowed more than expected to 4.9 percent in July,
\nsettling comfortably into a 3-6 percent target band and giving
\nthe central bank room to cut rates further this year to boost
\nlocal growth.<\/p>\n

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

Growth in Africa’s biggest economy will likely reach just
\n2.6 percent in 2012, the IMF said on Thursday, cutting its
\nforecast slightly from the 2.7 percent seen in May and saying
\nmonetary policy should remain accommodative.<\/p>\n

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

The rand, which has been buffeted by a relentless
\nwave of risk aversion over the euro zone debt crisis this year,
\nwas down 0.88 percent against the dollar by 1629 GMT compared
\nwith Wednesday’s close at 8.2200.<\/p>\n

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

“Overall the rand seems destined to be captivated by the
\nwider 8.05-8.55 range and we really need to see the end of
\nAugust before things pick up again,” Standard Bank trader
\nWarrick Butler said in a note.<\/p>\n

(Reporting by Stella Mapenzauswa)<\/p>\n

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

\n

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

JOHANNESBURG Aug 23 (Reuters) – South African government bonds rallied and yields fell on Thursday on expectations the central banks of China and the U.S. could loosen policy further to help their flagging economies, boosting demand for higher yielding emerging market debt. But underlying worries of contagion from the debt problems in the euro zone […]<\/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-13842","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\/13842","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=13842"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/13842\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=13842"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=13842"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=13842"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}