The South African bond market was little changed on Tuesday morning, suggesting that some traders might be taking a breather after pushing the market higher in recent days. The yield on benchmark R186 bond held steady at 8.62% in early trade, but was faring much better than the 9.20% reached in early April. The euphoria around the French presidential election at the weekend is one of the big themes driving sentiment, with Asian markets mostly stronger on Tuesday. "With our bonds having now failed to close below 8.60% for the second day in a row, it makes one wonder just how much more is left in the tank of this recent rally fuelled by foreign buying and a weakening dollar," Rand Merchant Bank analyst Gordon Kerr said. Foreigners have bought a net R4.1bn of local bonds over the past week, bringing the tally to R36.3bn so far in 2017.
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