Every week we give you our summary of happenings in the bond market.
Bond yields drifted slightly higher for a second consecutive week as the latest PPI number surprised on the upside, while the SARB retained its hawkish inflation tone. We sense some nervousness in the market place as rumours of an imminent local cabinet reshuffle keep surfacing. Global markets are awaiting the outcome of this week’s FOMC meeting. No rate change is expected. Instead market participants are eager for some news on the future unwinding of the Fed’s massive balance sheet. As investors, we maintain our cautious stance.