The bond market was weaker at lunchtime on Friday as the rand’s recent rally lost steam, following a hectic week that was dominated by the budget. The yield on the benchmark R186 was 8.74%, from 8.66% on Thursday, as the local currency slipped to session lows of R12.97 to the dollar, from this week’s highs R12.79 — the best since 2015. Sasfin Securities head of fixed-income dealing Ashley Dickinson said local politics carried a potential risk on the local currency and fixed-income market. "It all boils down to politics at the moment, so if you can guess the President’s strategy, then you will have a fair idea as to the next big move," said Dickinson. "If that aspect remains reasonably neutral — not a given by a long shot — then fundamentals suggest we should see a better currency and lower yields." US treasury bonds were relatively stronger, with yield on the benchmark 10-year note flattening to 2.3711%, from 2.4156%.
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