Bond prices marginally firmer in line with rand ahead of mid-term budget
Rating agencies are expected to review SA’s credit rating before the end of the year
South African bonds were slightly firmer at midday on Tuesday, taking their cue from a rand that gained against the dollar despite a firmer greenback. The rand gained some traction in line with other emerging market currencies and due to reduced concern over Finance Minister Pravin Gordhan’s possible dismissal. Fear over Gordhan’s possible dismissal has been allayed somewhat after two lobby groups filed court papers to have fraud charges against him set aside and the ANC’s chief whip called for the party’s leadership to step down for, among other things, using state instruments to pursue the finance minister, NKC Research analysts said. Gordhan will present the medium-term budget policy statement in Parliament on Wednesday. Rating agencies are expected to watch the mid-term budget closely as they are set to review SA’s credit rating before the end of the year. At 11.08am the R186 was bid at 8.770% from 8.790% on Monday. The R207 was bid at 8.020% from 8.050% on Monday. The rand was ...
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