Money SA economy
Bonds were firmer in midday play on Monday, on the back of market speculation about a possible rate cut at next week's Monetary Policy Committee meeting.
By 11.50am the short-term government R154 bond was bid at 6.470% after closing at 6.490% on Friday and the medium-term R157 was at 7.695% from 7.725% at its previous close. The long-term R186 was bid at 8.775% from 8.795% at its previous close.
The rand was bid at R7.6105/$ from R7.5499/$ at its previous close.
"Bonds are firmer on market speculation ahead of the MPC meeting next week. Other than that, it's very quiet today. We're not really tracking the rand, which is slightly weaker," said a local trader.
A key rates decision takes place on July 22 and while there are some expectations of a cut, investors remain hesitant to place too much weight in that being the final outcome. With no local economic data due on Monday, local markets will eye their global counterparts and the rand for direction.
