SOUTH African bonds were stable in early morning trade on Monday as the market mulled Friday’s better than expected US jobs report that increased the chance of the Federal Reserve hiking rates in December.
US nonfarm payrolls climbed by 271,000 jobs in October, the US Labour Department’s monthly report showed on Friday. Consensus among economists was for about new 180,000 jobs to be added.
The unemployment rate fell to 5% from 5.1% when it was expected to remain flat, Dow Jones Newswires reported.
At 9.06am, the benchmark R186 was bid at 8.565% and offered at 8.555% from a Friday close of 8.480%.
The middle-dated R207 was bid at 7.920% and offered at 7.905% from a previous close of 7.825%.
The rand was trading at R14.1974 to the dollar from a previous close of R14.1962.
Nedbank Capital said in an early morning note that risk assets looked stable after the payrolls data and the rand was mostly unchanged from where it closed on Friday night.
Nedbank said it looked like the new range for the R186 was 8.55%-8.35% with a bearish bias. "That said, it’s been a nice sell-off and the sensible thing to do is take some short-term profit and reassess."
It expected the rand to remain the main driver of sentiment in the bond market.
US nonfarm payrolls climbed by 271,000 jobs in October, the US Labour Department’s monthly report showed on Friday. Consensus among economists was for about new 180,000 jobs to be added.
The unemployment rate fell to 5% from 5.1% when it was expected to remain flat, Dow Jones Newswires reported.
At 9.06am, the benchmark R186 was bid at 8.565% and offered at 8.555% from a Friday close of 8.480%.
The middle-dated R207 was bid at 7.920% and offered at 7.905% from a previous close of 7.825%.
The rand was trading at R14.1974 to the dollar from a previous close of R14.1962.
Nedbank Capital said in an early morning note that risk assets looked stable after the payrolls data and the rand was mostly unchanged from where it closed on Friday night.
Nedbank said it looked like the new range for the R186 was 8.55%-8.35% with a bearish bias. "That said, it’s been a nice sell-off and the sensible thing to do is take some short-term profit and reassess."
It expected the rand to remain the main driver of sentiment in the bond market.
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