Johannesburg - South African government bonds weakened sharply early
on Wednesday and yields jumped to their highest in six weeks, tracking a
slide in US treasuries in anticipation of imminent policy tightening by
the Federal Reserve.
The local currency was steady, with traders
expecting it to take some direction from local inflation data and retail
sales numbers, ahead of the release of the minutes of the last Fed
policy meeting later in the day.
The yield on the 2026 bond climbed as much as 12 basis points to 7.735%, a level it last reached on January 7, according to Thomson Reuters data.
"There's a whole bunch of risk-off trades," said Citi trader Mark Southworth. "US Treasuries got hit hard last night and Asian rates and South African rates are following."
By 08:43 the rand was trading at R11.6820/$, barely changed from Tuesday's close at R11.6740.
"The rand has traded sideways so far this week but faces increased event risk today," Rand Merchant Bank currency analyst John Cairns said in a morning note.
The local currency was steady, with traders
expecting it to take some direction from local inflation data and retail
sales numbers, ahead of the release of the minutes of the last Fed
policy meeting later in the day.The yield on the 2026 bond climbed as much as 12 basis points to 7.735%, a level it last reached on January 7, according to Thomson Reuters data.
"There's a whole bunch of risk-off trades," said Citi trader Mark Southworth. "US Treasuries got hit hard last night and Asian rates and South African rates are following."
By 08:43 the rand was trading at R11.6820/$, barely changed from Tuesday's close at R11.6740.
"The rand has traded sideways so far this week but faces increased event risk today," Rand Merchant Bank currency analyst John Cairns said in a morning note.
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