The South African bond market was firmer in early trade on Thursday as they followed a stronger rand. Nedbank Corporate and Investment Banking (CIB) analysts said local bonds enjoyed strong overnight trade and rallied to their best levels since December 2015. This was due to an improvement in global risk sentiment and the continued strength of the rand. The local currency reached its best level in 11 weeks on Wednesday. NKC African Economics economists said the rand and SA’s bonds faced risk due to the uncertainty around the pace of US monetary policy tightening and the affects of US President Donald Trump’s proposed policies. At 8:38am the R186 was bid at 8.730% from 8.745% and the R207 was bid at 7.890% from 7.905%. The US 10-year treasury bond weakened amid Trump’s unblocking of proposed oil pipelines and was bid at 2.5297% from 2.4637%.
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