The South African bond market started off the week on a positive note, taking its direction from a stronger rand after S&P Global Ratings’ decision on Friday to keep the country’s credit rating at investment grade. S&P was the last of the three main agencies to preserve the foreign currency rating at investment grade, although it lowered the local currency rating by one notch. "While everybody is breathing a sigh of relief, the stark reality is that SA is not out of the woods in relation to credit ratings as the general feeling is that the can has only been kicked down the road until June next year," TreasuryOne dealer Andre Botha said. The yield on the R186 bond was at 8.950% in early trade, from 9.040% on Friday. The rand was at R13.86 to the dollar, having strengthened 2% on Friday. The yield on the 10-year US treasury note flattened on Monday morning to 2.3642%, from 2.3858% following Friday’s nonfarm payrolls report, which was broadly in line with market forecast, at least on t...
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.