The South African bond market was firmer on Thursday morning, a day after Finance Minister Pravin Gordhan delivered his budget for the 2017-18 fiscal year. The rand, which bonds usually track, firmed after the speech but was slightly softer on Thursday morning. Rand Merchant Bank analyst John Cairns said although the speech was "decent", some negatives included the absence of detail on reforms. Both bonds and equities would also not like proposals such as the switch to greater local bond supply and higher personal and withholding taxes. Cairns said bond yields were expected to fall, potentially targeting another test of the 8.50% level now that the local budget was out the way and the rand was strengthening. At 9am the R186 was bid at 8.68% from Wednesday’s 8.75% and the R207 bid at 7.75% from 7.835%
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.