SA’s bond market attracted a net R5.2bn worth of foreign flows over the past week, helping to prop up the rand before the rising local political temperature tempered the local currency’s momentum. The rand tumbled as much as 2.5% to the dollar on Monday as jitters resurfaced that Pravin Gordhan could be replaced as finance minister, after President Jacob Zuma ordered him and his deputy, Mcebisi Jonas, to return from the overseas investment roadshow. "That will undo all the good achieved recently and send investors packing. Not much more we can say other than prepare for the worst and hope that somewhere there are level heads at the top," said Ashley Dickinson, head of fixed-income dealing at Sasfin Securities. Total bond inflows stand at R8.49bn so far in 2017, eclipsing net local equity sales of about R32bn in the same period. The relatively attractive local bond rates have mainly drawn in yield-seeking foreign investors. The yield on the benchmark government bond hit 8.25% last we...
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