The South African bond market bowed to pressure from weaker global markets on Wednesday morning as Republican presidential candidate Donald Trump won the presidential election, against expectations. The yield on the benchmark R186 bond steepened to 8.740% in early trade, from 8.64% on Tuesday. Markets have banked on the probable victory of Democratic candidate Hillary Clinton, who was seen as maintaining the status quo. "I think once the dust has settled, markets will realise that either candidate is not a great option but the one thing that will more than likely play out is the [US Federal Reserve] may have to push back on another rate hike in December," Standard Bank trader Warrick Butler said. "This should ease the pressure on [emerging markets] over the next few weeks once all the bad tempered moves have been washed out." Money flowed into safe-haven assets such as gold and US treasury bonds. The yield on the 10-year US treasury note slipped to 1.8068% from 1.8271%.
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