The South African bond market weakened at lunchtime on Thursday as the rand slipped above R13 to the dollar amid some consolidation. However, both the rand and bond markets have enjoyed solid buying interest this week, boosted by improving sentiment towards emerging markets.

The yield on the benchmark R186 bond crept up to 8.63%, from 8.57% on Wednesday, which was the level seen in the fourth quarter of 2016.

The relatively benign inflation data this week boosted the bond market.

Further afield, the US treasury bonds were little changed following the Federal Reserve’s address on Wednesday. "In her testimony yesterday, [Janet] Yellen offered no additional insight into the timing of the central bank’s next rate hike but rather again indicated that the hike is data dependent," TreasuryOne dealer John Moni said.

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