The South African bond market was on a firmer footing on Tuesday morning, thanks a stronger rand looking likely to break the R14 to the dollar handle. The yield on the R186 bond was at 8.79% in early trade, from Monday’s 8.86%. The market drew support from easing concerns that Finance Minister Pravin Gordhan’s job was on the line on fraud allegations and as the dollar pulled back from multimonth highs against the basket of currencies. The US 10-year treasury note was relatively stronger as markets awaited the release of the consumer price inflation (CPI) data later in the day. The CPI, which the US Federal Reserve targets to increase interest rates, is expected to have picked up to an annual rate of 1.3% in September, according to Trading Economics, from 1.1% in August. The benchmark US treasury note yielded 1.7724%, from 1.8005%.
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