South African bonds were slightly weaker on Wednesday at
midday, taking their cue from a weaker rand ahead of the US interest
rate announcement in the evening.
At 11.29am, the yield on the R186 bond was at 8.940% in trade from 8.920% and the yield on the R207 was at 8.185% from 8.175% on Tuesday.
The rand was at R13.6540 against the dollar from R13.6048.
The Federal Reserve is expected to increase rates to 0.75%.
Rand Merchant Bank analyst John Cairns said an interest rate increase would be absorbed swiftly and, for all the attention focused on a hike, the second in 10 years, "it will probably pass without much fuss".
"The market is so assured of the rate increase that all the attention is already on when they are likely to act again," said Cairns,
Statistics SA announced that consumer inflation for November 2016 had accelerated to 6.6% from 6.4% in October.
At 11.29am, the yield on the R186 bond was at 8.940% in trade from 8.920% and the yield on the R207 was at 8.185% from 8.175% on Tuesday.
The rand was at R13.6540 against the dollar from R13.6048.
The Federal Reserve is expected to increase rates to 0.75%.
Rand Merchant Bank analyst John Cairns said an interest rate increase would be absorbed swiftly and, for all the attention focused on a hike, the second in 10 years, "it will probably pass without much fuss".
"The market is so assured of the rate increase that all the attention is already on when they are likely to act again," said Cairns,
Statistics SA announced that consumer inflation for November 2016 had accelerated to 6.6% from 6.4% in October.
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