The South African bond market lost further ground at midday on Monday in quiet trade on the US Presidents’ Day public holiday. After being bid at 8.74% in early morning trade, the R186 was bid at 8.80% at 11.39am from 8.68%, with the R207 bid at 7.89% from 7.785%. The softer trend was in line with a weaker rand, and ahead of Finance Minister Pravin Gordhan’s budget presentation on Wednesday. At 11.39am the rand was at R13.1441 from R13.0785. US treasuries were stable on Friday with the benchmark 10-year bond at 2.4173%. Local bonds were edgy ahead of the budget. "This budget would be critical, given there was no more room for upward revision of deficit targets as seen over the last few years," Old Mutual Investment group economist Johan Els said. With the current fiscal year running R5bn short, the rating agencies would pay close attention, Els said. Global bond markets were watching for details on the timing of US interest rate increases. Franklin Templeton fixed income analysts sa...
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