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South African bonds were mixed on Thursday morning as the rand lost some ground following the US Federal Reserve’s decision to keep interest rates unchanged.
The US Fed was marginally more upbeat and hawkish on Wednesday. “It indicated that the economy is growing at a solid pace on the back of household spending, fixed investment and gains in the labour market,” Nedbank analysts said.
At 8.59am the R186 was bid at 8.465% from 8.460% and the R207 was at 7.040% from 7.050%.
The US 10-year treasury was last seen at 2.7308% from 2.7203%.
Momentum SP Reid analysts said US treasury yields continued to grind higher as the combination of upbeat macroeconomic data, slightly elevated inflation expectations and an increasingly hawkish monetary policy stance created selling pressure in the bond market. – BusinessLive
Online Reporter