Bonds track a weaker rand during and after Pravin Gordhan’s budget speech
South African bonds tracked the rand weaker after it lost value on Wednesday afternoon, when Finance Minister Pravin Gordhan delivered the medium-term budget policy statement in Parliament. A local trader said Gordhan’s statement was not well received by the market, resulting in both a weaker currency and bonds. At 3.28pm the yield on the benchmark R186 was at 8.870%, from 8.770% on Tuesday. The yield on the R207 was at 8.100% from 8.040% on Tuesday. The rand was at R13.8781 to the dollar from R13.7651 previously. A sell-off in European government bonds spilt over into the US treasury market, sending yields a bit higher as investors grew more confident that the US Federal Reserve would raise US interest rates in December, Dow Jones Newswires reported. The 10-year US treasury yield was at 1.7836% from 1.7588% on Tuesday.
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