The South African bond market was firmer at midday on Tuesday, taking its cue from the stronger rand and more stable trading in UK gilts and US treasuries. At 11.35am the R186 was bid at 9.06% from 9.16% and the R207 was bid at 8.24% from 8.325%. The rand was 2% firmer against the dollar at R14.1473 from a previous R14.4356. The US 10-year treasury note was at 2.1898% from 2.1509% and the 10-year UK gilt was at 1.2549% from 1.2897. The local benchmark R186 has given up some of gain this year with Donald Trump’s election victory and the search for global yield being put on the back burner. The R186 is now yielding growth of 6.5% for 2016 from 10% before Trump’s election. Emerging market bonds were sold off on Trump’s victory as the market priced in the prospects of higher inflation on Trump’s fiscal stimulus plans and the chances of a bigger budget deficit with his plans to cut taxes. "Markets are also pricing in more aggressive rate hikes from the US Federal Reserve, amid the possib...
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