The bond market was weaker on Friday afternoon as the rand’s gains eased after rallying on improved global risk sentiment. The local currency traded in a narrow range but had returned to the R13/$ level after having strengthened to the R12/$ levels earlier in the week. Bonds usually track the rand. Nedbank Corporate and Investment Banking analyst Reezwana Sumad said the rand failed to make further gains possibly due to some caution in the markets ahead of the long weekend in the US. Rand Merchant Bank analyst Gordon Kerr said a break of R13/$ was always on the cards with the stronger move in the rand supported by the local bond market which reacted well to the consumer price index (CPI) figure. Earlier in the week Statistics SA reported that CPI had moderated to 6.6% in January from December’s 6.8%. Kerr said a lower inflation number was key in supporting a more constructive view on bond yields. At 3.32pm the bid on the R186 was at 8.73% from a previous close of 8.61 on Thursday. Th...
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