Money SA economy
Bonds were a couple of basis points firmer in early trade this morning as global markets, although still concerned about the euro debt package, were a bit more settled.
By 8.45am the short-term government R154 bond was bid at 6.82% and offered at 6.8% after closing at 6.84% on Tuesday and the medium-term R157 was at 8.06% from 8.085% at its previous close. The long-term R186 was bid at 8.910% and offered at 8.890% from 8.930% previously.
The rand was bid at R7.5434/$ from R7.5098/$ at its previous close.
A local bond trader said in the absence of any major moves on the international markets, local bonds will eye the rand for direction as they await the Reserve Bank's interest rates decision on Thursday afternoon.
The Reserve Bank's Monetary Policy Committee meeting gets underway on Wednesday, with the decision on interest rates due shortly after 3pm on Thursday. South Africa's repo rate is expected to remain unchanged at 6.5% when the decision is made on Thursday, according to a survey of 11 leading economists by I-Net Bridge.
