The South African bond market was wobbly on Tuesday, reflecting a weaker rand, but remained within its recent broad range. The yield on the benchmark R186 bond was at 8.65% in early trade, from 8.61% Monday, as the rand weakened R13.32/$ from R13.14/$ on Monday. Investors are likely to pay attention to the language the Reserve Bank’s monetary policy committee uses in its post-meeting announcement. The Bank is widely expected to leave the repurchase rate unchanged on Thursday. The Bank’s rate-setting committee meeting, starting on Tuesday, comes against the backdrop of renewed volatility in the rand, which has a potential to put pressure on inflation. Further afield, US treasury bonds were little changed in early trade, with the yield on the US 10-year note hovering at 1.2406%, from 1.2355%.
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