The South African bond market was stuck in a fairly narrow trading range with a weaker bias in the mid-afternoon session on Friday, just hours before Moody’s long-awaited decision on the country’s credit rating. Moody’s has SA’s foreign currency at two notches above subinvestment grade, while S&P Global Ratings’ is just one notch above. MyWealth Investments CEO Devin Shutte said Moody’s decision carried significant event risk for market participants holding positions in currencies, equities and fixed income. "I don’t think a downgrade is fully priced into financial assets," he said. "If we do receive one, expect a sharp negative reaction from markets." The yield on the benchmark R186 bond was at 9.080% in mid-afternoon trade, from 9.020%. The yield on the US 10-year note rose to 2.3707% from 2.3516%.

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