Bonds pare weekly gains in early trade
The market, along with the rand, has benefited from the improved global risk sentiment and better than expected local inflation numbers
The South African bond market was on shaky ground on Friday morning but the underlying trend remained firmer after positing strong gains this week.
The yield on the benchmark R186 bond crept up to 8.635%, from 8.610% on Thursday, but was still poised for its best weekly performance since the since mid-January.
The bond market, along with the rand, has benefited from the improved global risk sentiment. Better than expected local inflation numbers released this week added to market buoyancy.
"SA is currently benefiting from a perceived uplift in global cyclical factors, which will act as a tailwind to the domestic economy," said Mohammed Nalla, head of strategic research at Nedbank Corporate and Investment Banking. "That, coupled with an easing in perceived political risk premiums domestically, has acted as an additional catalyst."
US treasury bonds were relatively range-bound in early trade, as was the dollar, a scenario that is likely to persist throughout the day as no major economic data releases are scheduled.