The South African bond market stabilised at much strong levels on Wednesday morning, with the yield on the benchmark R186 bond flattening to its lowest level in a month. The bond market is largely tracking the rand, which has slowly but steadily regained ground against dollar and other major currencies since Donald Trump swept to victory in the US presidential election about a month ago. The stronger rand helps to alleviate inflationary pressure, which generally bodes well for the bond market. The yield on the R186 bond was 8.910% in the morning, its lowest level since November 8, from 8.930% on Tuesday. The yield on the US 10-year paper, which was the source of market volatility in the immediate aftermath of the Trump victory, has since stabilised in a 2.40%-2.50% range. With no major economic data, either locally or internationally, yields are likely to stay within the current trading ranges. Meanwhile, foreign investors sold a net R5.7bn worth of local bonds last week, according ...
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