Bonds firmer as rand makes another onslaught on R13.20/$
A rotation from equities to bonds feels largely complete and may have reversed slightly on political risk, Nomura analyst Peter Attard Montalto says
The bond market was firmer on Tuesday at midday as the rand attempted to break through the crucial R13.20/$ level. The rand reached R13.18 in intraday trade on higher commodity prices, before weakening again to R13.21. The rand has failed to break through this level convincingly since August. At 11.37am the R186 was bid at 8.66% from 8.715% and the R207 was bid at 7.775% from 7.84%. The rand was at R13.2210 from R13.3351. Although analysts expect further rand strength, possibly firming to R12.80 over the short term, that may not extend to bonds. Nomura analyst Peter Attard Montalto said a rotation from equities to bonds felt largely complete and may have reversed slightly on political risk. "That means local bonds have underperformed the rand in the past month," Attard Montalto said. The market was eyeing comments by US Federal Reserve chair Janet Yellen, who was scheduled to testify before the US congress later on Tuesday. Yellen’s remarks would be closely scrutinised for clues on ...
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