{"id":8492,"date":"2012-03-02T02:48:09","date_gmt":"2012-03-02T00:48:09","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/south-africas-rand-retreats-bonds-weaken\/"},"modified":"2012-03-02T02:48:09","modified_gmt":"2012-03-02T00:48:09","slug":"south-africas-rand-retreats-bonds-weaken","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/south-africas-rand-retreats-bonds-weaken\/","title":{"rendered":"South Africa’s rand retreats, bonds weaken"},"content":{"rendered":"

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

* Bonds retreat after strong foreign inflows<\/span><\/p>\n

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

* Rand also takes breather after reaching 5-mth highs<\/p>\n

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

JOHANNESBURG, March 1<\/span> (Reuters) – South Africa’s rand
\npulled back from the previous day’s five-month highs against the
\ndollar while government bonds weakened, with comments from the
\nReserve Bank about rising inflation pressures suggesting
\ninterest rates will stay firm for some time.<\/p>\n

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

Traders said local debt was also looking a touch overbought
\nafter non-residents purchased about 11 billion rand ($1.47
\nbillion) worth of paper in the first two months of this year, a
\nsharp reversal from a sell-off of more than seven billion rand
\nover the same period last year.<\/p>\n

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

On Thursday the yield on four year issue added 7
\nbasis points to 6.68 percent on Thursday while that for the
\n14-year bond rose 7.5 basis points to 8.305 percent.<\/p>\n

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

Reserve Bank Chief Economist Monde Mnyande said South
\nAfrica’s current macroeconomic climate posed policy challenges
\nin responding to rising inflation and weak economic activity, in
\nwhat the market took as another signal rates will stay at
\ncurrent levels for a while.<\/p>\n

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

“The Reserve Bank is clearly worried about inflation, and
\nthere’s signs that (economic) growth is picking up a little.
\nThere might even be the off-chance of rates rising later in the
\nyear,” one bond trader in Johannesburg said.<\/p>\n

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

The local market was still vulnerable to persisting
\nuncertainty about the debt situation in the euro zone, which has
\nclose trading ties with South Africa.<\/p>\n

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

“It’s a nervous market … there’s still uncertainty of what
\nhappens in Greece. It’s just risk-off trade at this point in
\ntime that’s causing a bit of a sell-off in the fixed interest
\nmarket,” said Marten Banninga, head of bond trading at World
\nWide Capital Securities.<\/p>\n

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

The rand also ran out of steam after touching five
\nmonths highs against the dollar on Wednesday.<\/p>\n

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

The currency was at 7.4710 against the dollar by 1721 GMT,
\nup just 0.59 percent from Wednesday’s close at 7.5150 and off
\nits strongest level since late September last year of 7.4020.
\n($1 = 7.4609 South African rand)\t<\/p>\n

(Reporting by Stella Mapenzauswa; editing by Ron Askew)<\/p>\n

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

\n

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

* Bonds retreat after strong foreign inflows * Rand also takes breather after reaching 5-mth highs JOHANNESBURG, March 1 (Reuters) – South Africa’s rand pulled back from the previous day’s five-month highs against the dollar while government bonds weakened, with comments from the Reserve Bank about rising inflation pressures suggesting interest rates will stay firm […]<\/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-8492","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\/8492","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=8492"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/8492\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=8492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=8492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=8492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}