Bonds in holding pattern ahead of Jacob Zuma’s state of the nation address
The South African bond market battled to find traction at midday even as it kept a slightly weaker bias — a trend that has been in play for the better part of the week. Market catalysts have been few and far between this week, although some analysts view the state of the nation address (Sona) on Thursday night as the potential market mover. President Jacob Zuma will deliver the speech against the backdrop of mounting anxiety over a possible Cabinet reshuffle that could include the removal of Pravin Gordhan as finance minister. "It seems like the market is stuck in wait-and-see mode ahead of the Sona tonight, as rumours of Cabinet reshuffles sit in the back of investors’ minds," Rand Merchant Bank analyst Michelle Wohlberg said. The yield on the benchmark R186 bond was at 8.845%, from 8.850% on Wednesday, while the rand was also range bound at R13.46. Global markets remained patchy at midday, with the yield on the US 10-year note at 2.3575%, while the dollar index pared early gains t...
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