The South African bond market was relatively stable on Wednesday morning, with traders reluctant to take up new positions ahead of the budget speech in the afternoon. The yield on the benchmark R186 bond was at 8.78% in early trade, from 8.79% on Tuesday, but materially weaker than last week, when it reached 8.53%. "We can expect bonds to continue trading in a narrow range, with all eyes watching the news wires for possible headlines to provide more clarity on our local political situation, while we wait for the budget speech to be delivered," Rand Merchant Bank analyst Michelle Wohlberg said in a note. "Although no major changes are expected from this year’s budget, keep a look out for nuances in the finance minister’s speech that might cause a reaction in the market. " The US treasury bonds were also stable, as was the dollar. The yield on the US 10-year note was at 2.4451% from 2.4173% on Tuesday
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