The bond market traded slightly weaker on Monday afternoon ahead of Finance Minister Pravin Gordhan’s budget speech on Wednesday. Gordhan was expected to announce fiscal measures to try reduce the forecasted budget deficit of 3.1%. Economists at Investec said that higher tax revenue and lower government expenditure would be needed to reduce the shortfall. The announcement comes amid a negative public reaction to Brian Molefe’s imminent appointment as an MP, with widespread speculation that he may replace Gordhan as finance minister. At 3.32pm the benchmark R186 was bid at 8.80% from 8.680% and the R207 was bid at 7.890% from 7.785% previously. The US 10-year treasury bond yielded 2.4182% from 2.4173%.
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