{"id":9575,"date":"2012-04-03T03:47:16","date_gmt":"2012-04-03T01:47:16","guid":{"rendered":"http:\/\/www.myza.co.za\/04\/s-african-rand-edges-higher-bonds-also-firmer\/"},"modified":"2012-04-03T03:47:16","modified_gmt":"2012-04-03T01:47:16","slug":"s-african-rand-edges-higher-bonds-also-firmer","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/s-african-rand-edges-higher-bonds-also-firmer\/","title":{"rendered":"S.African rand edges higher, bonds also firmer"},"content":{"rendered":"

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

JOHANNESBURG, April 2<\/span> (Reuters) – South Africa’s rand edged
\nhigher against the dollar on Monday, after bullish China data
\nboosted risk appetite, and government bonds rose, although
\ndemand for local debt could weaken if inflation data starts
\npointing to interest rate rises.<\/span><\/p>\n

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

The rand traded 0.37 percent firmer at 7.6290 to
\nthe dollar at 1606 GMT after closing at 7.6570 last week, as
\nupbeat Chinese factory data boosted the global economic outlook
\nand supported demand for riskier emerging market assets.<\/p>\n

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

The yield on the three-year benchmark bond closed
\n2.5 basis points lower at 6.675 percent and the yield on 14-year
\npaper shed three basis points to 8.35 percent.<\/p>\n

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

“Nothing much has happened today – I haven’t seen big-ticket
\ntrading going through but the rand could have been a major
\ncontributor (to bond gains),” Alvin Chawasema, a trader at
\nRenaissance Capital, said.<\/p>\n

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

“The highlight for me today has been the moves on the curve.
\nSurprisingly the back end is slightly better bid despite more
\npaper to be issued on the longer end at tomorrow’s auction.”<\/p>\n

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

Analysts however said demand for South African bonds,
\nparticularly from offshore accounts, could start to wane if
\ninflation treks higher, raising the likelihood of interest rate
\nhikes.<\/p>\n

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

The Reserve Bank left its repo rate unchanged last week,
\nsaying risks to the inflation outlook were evenly balanced but
\nwarned it would need to be more vigilant on inflation amid signs
\n price pressures were becoming broad-based.<\/p>\n

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

“Bonds have recorded strong inflows (in the first three
\nmonths of the year) but the inflows could start to dissipate as
\nthe year unfolds if indeed inflation is perceived as a problem
\nor if the market is more convinced of rate hikes,” Tradition
\nAnalytics said in a note.<\/p>\n

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

Recent government auctions have pointed to strong demand for
\ninflation-linked bonds, traders noted.<\/p>\n

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

“I think what investors are saying is that we are
\nuncomfortable with where the rand is and the effect that will
\nhave on inflation,” Chawasema said.<\/p>\n

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

The rand is still up more than 4 percent against the dollar
\nsince the start of the year, but has shed about 3 percent of its
\nvalue since late February’s five-month highs.\t<\/p>\n

(Reporting by Stella Mapenzauswa; Editing by Susan Fenton)<\/p>\n

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

JOHANNESBURG, April 2 (Reuters) – South Africa’s rand edged higher against the dollar on Monday, after bullish China data boosted risk appetite, and government bonds rose, although demand for local debt could weaken if inflation data starts pointing to interest rate rises. The rand traded 0.37 percent firmer at 7.6290 to the dollar at 1606 […]<\/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-9575","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\/9575","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=9575"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/9575\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=9575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=9575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=9575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}