Money market yields came down across the curve. 3 Month Jibar yields came down from 9.75% to 8.81% while the 1 year Jibar rates came down from 8.49% to 8.35%.The lower rates was on the back of the Repo that came down with 1% on an surprise change of MPC dates by Tito Mboweni on the 24th of March on the back of weaker than expected growth figures. Looking forward the next MPC meetings will take place every month except for July we expect the Reserve Bank to lower the Repo rate from 9.50% to 9.0% at the next meeting taking place on 30th of April. During the month major maturities were invested in the 3 month to 6 month area of the yield curve. Longer term assets were included in the fund to take advantage of the higher yields and to protect investors against reinvestment risk while keeping a minimum balance in the current account. High quality credit was included to take advantage of the higher yields available.

Money market yields during November came down across the curve. 3 Month Jibar yields came down from 12.35% to 12.05% while the 1 year Jibar rates came down much more from 12.60% to 11.02%.The lower rates was on the back of weaker than expected growth numbers and better than expected inflation figures. The chances for a rate cut in December is looking good although our thoughts is that rate cuts will only occur from February 09 onwards. Looking forward the next MPC meeting will take place on the 11th of December and we expect the Reserve Bank to keep the Repo rate unchanged at 12%. Current market movements suggest that the money market curve will become more inverse in other words the long end of the money market will trade below the short end of the curve. Short dated forward rates pricing in a very good chance for a 50 basis point rate cut in December and further rate cuts with every MPC meeting going forward