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CPI has no effect on bonds

Dec 12 2012 13:26 I-Net Bridge

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Johannesburg - The bond market was quiet on Wednesday at noon‚ with the consumer price index at 5.6% year on year in November - the same as in October - not having any effect on the bond market.

“The CPI came in at market and as a result had no effect on bonds at all. There isn’t a lot going on in the market at the moment‚ although there was a bit of interest in the 2048s earlier‚ with funds lengthening their durations for the last month and a half already‚” a local trader said.

At 11:51am‚ the benchmark R186 was bid at 7.325% and offered at 7.295%‚ from a close of 7.305% on Tuesday. The R157 was trading at 5.420% from a close of 5.425% on Tuesday. The R207 was bid at 6.375% and offered at 6.350% from a close of 6.360% on Tuesday.

At 11:51am the rand was bid at R8.6653 per US dollar from a close of R8.6560 on Tuesday.

The last inflation-linked bond auction for the year takes place on Friday.

 

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