Bond market is steady but weaker amid rumours of a cabinet shake-up
Talk of a cabinet shake-up was undermining the local bond market, which was steady but at relatively weaker levels in afternoon trade
The South African bond market steadied at relatively weaker levels in afternoon trade on Monday, undermined partly by murmurs about a possible cabinet shake-up. Some tip former Eskom boss Brian Molefe, sworn in as an ANC MP last week, to succeed Finance Minister Pravin Gordhan or his deputy, Mcebisi Jonas. Molefe left state-owned power utility late in 2016 under a cloud after he was implicated in former public protector Thuli Madonsela’s state-capture report, which alleged improper conduct between him and the Gupta family. Molefe and the Guptas deny any wrongdoing. Investec Asset Management analyst Malcolm Charles said the domestic situation has cast a shadow over investor sentiment. "SA is actually is in a good spot, with the inflation cycle improving while economic growth is expected to pick up. The global macro outlook is also looking up." The yield on the benchmark R186 bond was at 8.74% in late trade from 8.70% on Friday as the rand slipped to session lows of R12.99 to the doll...
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