Bonds firmer as market recovers from rand weakness
The South African bond market was firmer in late afternoon trade on Friday as bonds bounced back from Thursday’s rout that saw the rand lose nearly 3% against the dollar.
Bond yields rose in tandem with the weaker rand, but yields fell again on Friday from oversold levels.
The local market was firmer despite US treasuries trading weaker after a strong run earlier in the week as US bonds strengthened on a softer dollar.
"The risk-off scenario resulted in US treasuries rallying the most since July last year," said TreasuryOne dealer Phillip Pearce, who added that volatility will remain high for now: "With the uncertainty surrounding Trump, it’s a safe bet to think dollar weakness will continue."
The US 10-year bond was at 2.2477% from 2.2321% after yields fell below 2.20% earlier in the week as prices rose.
At 3.40pm, the bid on the R186 was at 8.68% from Thursday’s 8.76% and the R207 was at 7.47% from 7.535%.
The rand was at R13.2524 to the dollar from R13.4244.