Rand Gains as Producer Price Data Expected to Support Rate Cut

News flash:South Africa cut interest rates as inflation slows.More details below.

 

Rand Gains as Producer Price Data Expected to Support Rate Cut

“South African bonds gained, driving yields to record lows, amid speculation the central bank will cut interest rates as inflation slows and Europe’s debt crisis threatens global economic growth. The rand advanced.”
http://www.bloomberg.com/news/2012-06-28/rand-gains-as-producer-price-data-expected-to-support-rate-cut.html

Conclusion:

The Yields on South Africa’s $1 billion of 5.875 percent bonds due 2022 dropped three basis points to a few.55 percent, the minimum on record.

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