Picture: ISTOCK
Picture: ISTOCK

The South African bond market was relatively well supported on Friday morning, rebounding from a sharp sell-off on Thursday, in line with the rand.

The local bonds and the rand drew support from improved stability in global markets at the end of a volatile week dominated by politics in the US and Brazil.

The yield on the benchmark R186 bond was at 8.72% in early trade, from 8.76% on Thursday, as the rand came back from lows of R13.59/$ this week to R13.30/$.

As an emerging market, SA is susceptible to potential portfolio outflows, which tend to affect the rand and bond yields.

US Treasury bonds, which rallied earlier this week because of their perceived safe-haven status, were slightly weaker in early trade on Friday.

The yield on the benchmark US Treasury note was at 2.2744%, from best levels of 2.2418% seen last week.

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