MONDAY, 11.00AM
AS rumours of an imminent interest rate cut continued to abound, the benchmark R150 government long bond on Friday broke through the 14% yield level amid bullish expectations about economic indicators to be released this week.
The R150 traded between Thursday’s closing level of 14,03% and 13,955%, before closing at 13,98%. The R150 is expected to trade around 14% until trade balance, money supply, credit extension, inflation and reserves figures are released. Market expectations are that economic data will lead to a drop in interest rates, leading to declining bond yields.