Bonds marginally weaker despite firmer rand ahead of budget speech
Even split between foreign and local investors buying bonds
South African bonds were fractionally weaker on Tuesday afternoon even though the local currency had firmed slightly. Trade was range bound as investors waited for direction from Finance Minister Pravin Gordhan’s medium-term budget policy statement in Parliament on Wednesday. At 3.44pm the R186 was bid at 8.785% from 8.765% on Monday. The R207 was unchanged at 8.05%. The rand was trading at R13.8582 to the dollar from R13.9096 on Monday. The rand and other emerging-market currencies were firmer despite a stronger dollar which gained as expectations rose that US interest rates would rise before the end of the year. The weekly government bond auction earlier on Tuesday was successful, with an even split between foreign and local investors buying bonds, a local trader said. The benchmark 10-year US treasury note was last seen yielding 1.7702% from 1.7657% on Monday.
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