The South African bond market was on a shaky ground on Friday but remained within its recent ranging range. The yield on the benchmark R186 bond was at 8.76% in early trade, from 8.73% on Thursday, as the rand came off the morning’s best level to the dollar from R13.32 to R13.41. "We see further rand strength to the R13.30/$ level in the near term, but still believe that in the longer term political and economic headwinds will keep the rand on a weakening trajectory," Kaon Capital CE Luke Alers said. Bonds usually track the rand, which, if it strengthens, keeps inflation in check. The headline consumer inflation, which the Reserve Bank closely monitors to decide on in interest rates, currently stands at 6.1%. The yield on the US treasury note was at 2.3741% in early trade, from highs of 2.4200% on Thursday.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.