The South African bond market was a lot stronger in late trade on Thursday, reflecting the rand’s improving fortunes. But the market remained sensitive and vulnerable to news around the future of Finance Minister Pravin Gordhan amid speculation that he might lose his job in a Cabinet reshuffle. The yield on the benchmark R186 bond was at 8.5% in late trade, from 8.67% on Wednesday, but was still significantly weaker from Monday’s 8.29%. After a monetary policy committee meeting, South African Reserve Bank governor Lesetja Kganyago said political ructions posed a threat to the rand and inflation outlook. "Today’s statement struck a comforting note of calm in the midst of the latest political turbulence," Capital Economics’s Africa economist John Ashbourne said in a note. "The Reserve Bank is working hard to assure the markets that the macroeconomic situation is — despite the headlines — slowly improving, and that there is a safe hand on the tiller." The rand was at 12.82/$ in late tr...
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