South African bonds were marginally firmer late on Friday as the rand was stable in range-bound trade, after US third-quarter preliminary GDP data increased at a rate of 2.9% — better than market expectations of 2.6%. The rate was also much stronger than the 1.4% growth in the second quarter and 0.8% in the first. The better growth number has increased investor expectation that the US Federal Reserve would be getting ready to tighten monetary policy as early as December. A US rate increase would boost the dollar and weigh on emerging-market currencies such as the rand, and local bonds. The yield on the R186 bond was 8.880% late on Friday from 8.920% on Thursday. The yield on the R207 was 8.120% from 8.150% previously. The benchmark 10-year US treasury note was last yielding 1.8550%, from 1.8520% on Thursday.
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