Bonds stabilise at weaker levels at lunchtime
The fall-out of the recent Cabinet shake-up remains the dominant theme, with global developments secondary
The South African bond market stabilised at weaker levels at the tail end of what been another eventful week for the bond market. The yield on the benchmark R186 bond hovered around 9.03% at lunchtime on Thursday, little changed from Wednesday when it settled at 8.99%. The fall-out of the recent Cabinet shake-up remains the dominant theme, with global developments playing second fiddle. "Is all the bad news out the way? With the ANC displaying a united front post the NWC [national working committee] meeting, any chances of the ruling party recalling the president [has] declined sharply," Rand Merchant Bank analyst Gordon Kerr said. "But wait, we still have Fitch, which hasn’t set a specific date to perform a rating review. If SA is downgraded by Fitch, then we could be facing a subinvestment grade rating on both our local and foreign currency debt." Earlier this week, S&P Global Ratings downgraded the country’s foreign currency-denominated debt, which dragged the yield on the R186 b...
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