The South African bond market was relatively stable on Friday morning, taking its cue from the rand, which hovered at its best level to the dollar in more than a year.The local currency broke out of its recent trading range on Thursday, pulling the bond market along with it, boosted by a dollar that was weaker on global markets"Thursday proved to be one of those days when traders were left scratching their heads," Rand Merchant Bank analyst Gordon Kerr said in a note. "A solid budget speech and weaker dollar all transpired to send USD/ZAR lower. This in turn should have seen our bonds rally, and while they did, they didn’t come close to matching the performance of the currency."The yield on the benchmark R186 was at 8.68% in early trade, from 8.66% on Thursday while the rand was R12.8695 to the dollar from R12.8684.US treasury bonds were relatively stronger, with yield on the benchmark 10-year note flattening to 2.3709%, from 2.4156%.© Business Day
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