MARKET WRAP: SA bonds gain for a second day after coronavirus sell-off

SA bonds firmed for a second consecutive day on Wednesday as investors digested a surprise interest-rate cut by the US Federal Reserve on Tuesday, while the JSE closed marginally weaker after being positive for most of the day.

As part of a response by global central banks to the coronavirus outbreak, the US Fed slashed interest rates by 50 basis points (bps) in an attempt to stimulate the economy. Other major central banks have scheduled meetings in the coming weeks and could follow the Fed’s lead. These include the European Central Bank, Bank of England and the Bank of Japan.