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Bonds ease after CPI increases

Jan 23 2013 12:11 I-Net Bridge

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Johannesburg - The South African bond market eased slightly in quiet midday trade on Wednesday after the release of the December consumer price index (CPI) at 10am came in at the consensus forecast of 5.7% year-on-year (y/y) from 5.6% y/y in November. Forecasts among the eleven economists surveyed by I-Net Bridge ranged from 5.6% to 5.8%.

“Bond yields have edged a touch higher after the CPI data‚ but as it was in line with expectations‚ the move was subdued‚” a local bond dealer said.

At 11:30 the benchmark R186 was trading at 7.260% from 7.240% at Tuesday’s close. The R157 was trading at 5.355% from 5.340% at its previous close and the R207 was bid at 6.275% and offered at 6.245% from its previous close of 6.235%.

The rand was last bid at R8.8876/$ from R8.8436 at Tuesday’s close.

The National Treasury said at 11:00 that it would auction R700m worth each of R186‚ R209 and R213 bonds on January 29. 

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