The South African bond market was slightly stronger on Friday morning, taking direction from a perkier rand just hours before the inauguration of Donald Trump as the US president. "His address will be closely watched to determine policy direction, but a speech focusing on a stronger, more inward-looking US will result in initial US dollar strength," Rand Merchant Bank analyst Deon Kohlmeyer said. Trump will be sworn in later on Friday amid mounting concern over the lack of detail regarding the expansionary agenda he promised during the election campaign, as well as his protectionist agenda The yield on the R186 bond was at 8.695% in early trade from 8.710% on Thursday while the rand traded at R13.5148 to the dollar from R13.5561. The stronger rand alleviates inflation worries, which bodes well for the bond market. US treasury bonds were relatively steady in early trade, with yield on the 10-year note hovering around 2.4543% from 2.4271%.
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