The South African bond market got off to a positive start on Monday, with yields on the benchmark R186 government bond dipping to November 9 lows when Republican Donald Trump won the US presidential race. The bond market drew support from the stronger rand, which reduces the risk of higher inflation. Sentiment was buoyant after the country managed to stave off rating downgrades from Fitch and Moody’s. On the global level, the dollar was on the defensive against major currencies while the yield on 10-year US treasury flattened, after a big spike over the past two weeks. The local 10-year note yielded 8.910% from 9.065% on Friday "It is an event-packed week but the key story this morning is simply the old one of president-elect [Donald] Trump: late Friday and early Monday price action suggest that the election-related upside in the dollar and treasury yields is finally petering out," Rand Merchant Bank currency strategist John Cairns said. Foreign investors bought, meanwhile, a net R1...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.