The South African bond market was firmer on Thursday morning as a result of the stronger rand. Bonds usually track the local currency. The rand took heart from data released on Wednesday that showed that the current account deficit narrowed to 1.7% of GDP in the fourth quarter, from 3.8% in the third, the best level in six years. On Wednesday, Statistics SA said the consumer inflation in February had eased to 6.3%, down from 6.6% in January. Rand Merchant Bank (RMB) analyst Michelle Wohlberg said this had ignited a renewed interest in the rand and South African government bonds as the market adds to the probability of a rate cut this year. At 09.01am the R186 was bid at 8.27% from Wednesday’s 8.34% and the R207 at 7.32% from 7.395%.
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