The bond market strengthened on Tuesday afternoon, benefiting from the rand’s rally. The local currency strengthened to R13.1111/$, the strongest it has been since October 2015. Bonds usually track the rand. BP Bernstein analyst Makwe Masilela said the rand’s strength was mainly attributable to anticipation of US Federal Reserve chair Janet Yellen’s speech on Tuesday evening, at the US congress. She was expected to give an indication on interest rate increases. Rand Merchant Bank analyst Michelle Wohlberg said investors globally were taking on riskier assets, with equities rising, the dollar strengthening and bonds retreating. At 3.38pm the R186 was bid at 8.63% from Monday’s 8.715%. The R206 was bid at 7.75% from 7.84% previously. The US 10-year treasury bonds were flat at 2.4323% from 2.4322%.
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