Bond yields rise as traders await inflation data

South African bond yields were higher on Wednesday morning ahead of the release of local inflation figures.

Statistics SA will release the consumer price index (CPI) data at 10am.

The data are expected to show that inflation rose significantly to 5.2% in December compared with a year ago‚ from 4.8% year on year in November.

The 5.2% is a median consensus forecast from a survey of 10 economists and is the quickest pace of acceleration in a year.

The figures will help to shape the Reserve Bank’s decision on interest rates at its January monetary policy committee meeting.

Investors have priced in a 98% probability of a 50 basis point rate hike.

At 8.43am‚ the benchmark R186 was bid at 9.800% and offered at 9.780% from a Tuesday close of 9.730%.

The middle-dated R207 was bid at 9.310% from 9.250% previously.

- TMG Digital/BDlive