{"id":9212,"date":"2012-03-23T03:24:39","date_gmt":"2012-03-23T01:24:39","guid":{"rendered":"http:\/\/www.myza.co.za\/03\/s-african-bonds-rally-on-cpi-rand-weakens-sharply\/"},"modified":"2012-03-23T03:24:39","modified_gmt":"2012-03-23T01:24:39","slug":"s-african-bonds-rally-on-cpi-rand-weakens-sharply","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-bonds-rally-on-cpi-rand-weakens-sharply\/","title":{"rendered":"S.African bonds rally on CPI, rand weakens sharply"},"content":{"rendered":"

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

* Bonds gain as CPI dents case for rate hike<\/span><\/p>\n

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

* Rand tracks other commodity currencies weaker<\/p>\n

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

JOHANNESBURG, March 22<\/span> (Reuters) – South Africa’s government
\nbonds rallied on Thursday after domestic inflation surprised the
\nmarket to the downside, backing the case that the Reserve Bank
\nmight not have to increase interest rates after all this year.<\/p>\n

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

The rand extended losses against the dollar, however, and
\nwas also weaker versus the euro, partly on dented prospects for
\nhigher rates and also in tandem with weaker commodity currencies
\nelsewhere as worries about the global economy resurfaced.<\/p>\n

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

The yield on the benchmark three-year bond closed
\nfive basis points lower on the day at 6.89 percent.<\/p>\n

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

It was at 6.97 percent just before Statistics South Africa
\nreported that CPI braked unexpectedly to 6.1 percent
\nyear-on-year in February from 6.3 percent in January.<\/p>\n

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

The yield on the longer-dated 2026 issue fell
\nthree basis points to 8.515 percent.<\/p>\n

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

“The CPI data was a reprieve for the market. I don’t see the
\nmarket rallying too much further but it’s comforting knowing
\nthat inflation isn’t rocketing like some people anticipated.
\nIt’s given the market a bit of a pause and some breathing
\nspace,” said Steve Arnold, a bond trader at Investec.<\/p>\n

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

Government bond prices have sold off sharply over the past
\nweek, pushing yields to their highest levels since mid-December,
\nas the market saw it as highly likely the Reserve Bank would
\nresume monetary tightening by year end to curb inflation.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

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

* Bonds gain as CPI dents case for rate hike * Rand tracks other commodity currencies weaker JOHANNESBURG, March 22 (Reuters) – South Africa’s government bonds rallied on Thursday after domestic inflation surprised the market to the downside, backing the case that the Reserve Bank might not have to increase interest rates after all this […]<\/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-9212","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\/9212","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=9212"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/9212\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=9212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=9212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=9212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}