Bonds on slippery slope ahead of budget speech
Finance Minister Pravin Gordhan will deliver his speech against the backdrop of renewed speculation that he could lose his job in a Cabinet reshuffle
The South African bond market was weaker on Tuesday morning, suggesting a degree of caution heading into the budget speech on Wednesday. Finance Minister Pravin Gordhan will deliver the budget against the backdrop of renewed speculation that he could lose his job in a Cabinet reshuffle These concerns were fuelled by confirmation that former Eskom boss Brian Molefe was headed to Parliament as an MP, a move seen by some as precursor to a Cabinet post. Murmurs of a Cabinet reshuffle, particularly involving the finance minister, have previously unnerved the markets. The yield on the benchmark R186 bond was at 8.79% in early trade, from 8.76% on Monday while the rand was relatively range-bound at R13.08 to the dollar. Global markets were relatively subdued in early trade, as US markets returned online from the long weekend. The yield on the US 10-year note was at 2.4379% from 2.4173% on Friday.
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