Johannesburg - The South African bond market was firmer in midday trade on Thursday after the December producer price index (PPI) data at 11:30 came in better than expected‚ while a stronger rand also helped the bond market.
SA’s producer inflation was expected to have increased to 5.5% year on year (y/y) in December from 5.2% y/y in November‚ a survey by I-Net Bridge found. The actual December number was 5.2% y/y.
Forecasts among 10 leading economists surveyed ranged from 5.3% y/y to 5.6% y/y.
“The rand and PPI have boosted our market‚” a local bond dealer said.
At noon the benchmark R186 was trading at 7.360% from 7.460% at Wednesday’s close.
The R157 was trading at 5.360% from 5.390% at its previous close and the R207 was trading at 6.400% from its previous close of 6.430%.
The rand was last bid at R8.9688/$ from R9.0187 at Wednesday’s close and R9.0208 at Tuesday’s close.
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