Share

Bonds firm ahead of Bernanke speech

Johannesburg – The South African bond market was firmer in midday trade on Monday ahead of a speech later in the day by US Federal Reserve chairman Ben Bernanke.

“We are seeing good demand from offshore. It looks as though they are expecting a bond-positive speech from US Federal Reserve chairman Ben Bernanke this evening‚” a local bond dealer said.

At 11:45 the benchmark R186 was trading at 7.080% from Friday’s close of 7.150%. The R157 was trading at 5.310% from 5.340% at its previous close and the R207 was bid at 6.180% and offered at 6.150% from its previous close of 6.210%.

The rand was last bid at R8.6930/$ from R8.7413/$ at Friday’s close and R8.6566/$ at Thursday’s close.

Dow Jones Newswires reported that a speech due later by Federal Reserve Chairman Ben Bernanke will likely put an end to speculation that US policy makers are any closer to ending their bond-buying programme.

The Fed chief is due to speak at 23:00 at the University of Michigan on monetary policy and recovery from the world-wide financial crisis. It will be his first remarks since minutes of the Fed's December meetings were interpreted by some traders as indicating an early end to the programme of quantitative easing‚ or bond buying‚ given signs of improvement in the economy.

Noted Fed dove, Chicago Fed President Charles Evans, told a forum in Hong Kong on Monday that policymakers can wind down asset purchases if the economy creates about 200 000 jobs a month for several months and is likely to meet its quantitative targets to begin raising the federal funds rate in 2015.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.92
-0.1%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.45
+0.1%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.1%
Platinum
911.00
+1.6%
Palladium
1,008.15
+0.6%
Gold
2,222.89
+1.3%
Silver
24.90
+1.0%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders