{"id":14835,"date":"2012-09-21T04:42:38","date_gmt":"2012-09-21T02:42:38","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/s-africa-rand-bond-yields-edge-up-as-central-bank-holds-rate\/"},"modified":"2012-09-21T04:42:38","modified_gmt":"2012-09-21T02:42:38","slug":"s-africa-rand-bond-yields-edge-up-as-central-bank-holds-rate","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-africa-rand-bond-yields-edge-up-as-central-bank-holds-rate\/","title":{"rendered":"S.Africa rand, bond yields edge up as central bank holds rate"},"content":{"rendered":"

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

JOHANNESBURG, Sept 20<\/span> (Reuters) – South Africa’s rand edged
\nhigher against the dollar and bond yields ticked up on Thursday
\nafter the Reserve Bank kept interest rates on hold as expected.<\/span><\/p>\n

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

But the dovish tone of the central bank’s policy statement
\nleft some traders seeing some chance of a cut at the Bank’s last
\nmeeting of the year in November.<\/p>\n

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

The rand was at 8.3230 to the dollar at 1615 GMT,
\ndown 0.61 percent on the day but up from a low of 8.38 reached
\nduring Reserve Bank governor Gill Marcus’s speech.<\/p>\n

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

Benchmark government bond yields edged up after Marcus kept
\nthe repo rate steady at 5.0 percent, with the 3-year bond
\n closing the day at 5.41 percent from 5.4 before the
\nannouncement, a gain of 1.5 basis points on the day.<\/p>\n

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

The yield for the longer-dated 14-year issue crept
\nhigher to 7.525 percent from 7.51 percent before the rates
\nannouncement.<\/p>\n

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

The Reserve Bank cut its 2012 growth forecast to 2.6 percent
\nfrom the 2.7 percent predicted in July, saying Africa’s biggest
\neconomy was expected to remain weak because of poor global
\ngrowth and disruptions to mining output.<\/p>\n

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

Inflation was expected to remain within the target range but
\nthe Bank saw the rand exchange rate as a potential risk
\nparticularly “in the event of an unsustainable widening of the
\ncurrent account deficit”.<\/p>\n

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

“The statement in general was a little bit more dovish than
\nmost market players anticipated and the curve steepened on the
\nback of that,” said Marten Banninga, head of bond trading at WWC
\nSecurities.<\/p>\n

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

“I think trade will be (biased) towards an emphasis for a
\ncut in the future.”<\/p>\n

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

The Reserve Bank said the rand had been underpinned to some
\nextent by continued inflows to the debt market in the lead-up to
\nSouth Africa’s inclusion in the Citibank World Government Bond
\nIndex (WGBI) next month.<\/p>\n

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

Non-resident purchases of South African bonds since the
\nprevious meeting of the MPC in July amounted to 12.1 billion
\nrand and were expected to persist for some time.<\/p>\n

(Reporting by Stella Mapenzauswa; Editing by Ruth Pitchford)<\/p>\n

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

\n

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

JOHANNESBURG, Sept 20 (Reuters) – South Africa’s rand edged higher against the dollar and bond yields ticked up on Thursday after the Reserve Bank kept interest rates on hold as expected. But the dovish tone of the central bank’s policy statement left some traders seeing some chance of a cut at the Bank’s last meeting […]<\/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-14835","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\/14835","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=14835"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14835\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}