PSG Money Market comment - October 2002 - Fund Manager Comment22 Nov 2002
The market was building a worse case scenario into the price of money market instruments. The release of the PPI figure for September 2002 triggered aggressive buying of the longer-dated instruments as players had to buy back short positions. This also coincided with major banks buying treasury bills and SARB debentures aggressively for prudential requirements as well as foreign investors entering the bond market. The market' s view of no further increasesin the repo rate may be tested at the next MPC meeting at the end of November.
PSG Money Market comment - September 2002 - Fund Manager Comment15 Oct 2002
The South African Reserve Bank raised the repo rate to 13.5% at the MPC meeting in mid September. A major concern for the Reserve Bank is the flow on effect of higher wage settlements caused by rising prices. The money market is expecting a further rise in the repo rate at the MPC meeting at the end of November.
The NCD curve is sloping upwards and does not yet reflect a turnaround in money market rates.
PSG Money Market comment - August 2002 - Fund Manager Comment20 Sep 2002
The inflation story is driving yields higher in the money market. Both the latest releases on CPI and PPI were higher than market expectations and NCD rates rose across the curve. Currently the market expects the SARB to increase the repo rate by 50 basis points. With inflation possibly peaking in the last quarter of 2002 before falling lower in 2003, together with the impact of a weaker global economy, a rise in interest rates may not be a certainty.
PSG Money Market comment - April 2002 - Fund Manager Comment14 May 2002
The latest economic releases on inflation and credit growth still supports a cautious approach in the money market. Over the month both call rates and 3 month NCD rates moved higher in anticipation of a further increase in the repo rate at the next MPC meeting. The strong bond market supported the 12 month area with 1 year NCD rates virtually unchanged at 12.5%.
PSG Money Market comment - March 2002 - Fund Manager Comment23 Apr 2002
At the MPC meeting held in Mid March, the SARB increased the repo rate by 1% to 11.5%. Money market rates rose across the curve to reflect this change. The current NCD yield curve remains strongly positively shaped and reflects a further tightening of 1.5% over the next 6 months. Inflation remains the major headache with both agricultural commodities and oil prices rising in US$ terms.
PSG Money Market comment - Dec 01 - Fund Manager Comment22 Jan 2002
Money Market rates were very volatile in December, as the Rand moved sharply against the US Dollar. The biggest rise occurred in the 12 month area.