The South African bond market was fractionally weaker on Friday morning as the rand came off its best levels to the dollar. The bond market has maintained a firmer bias of late as the euro remains stronger against the dollar. The Reserve Bank left the repo rate unchanged at 7% on Thursday, with governor Lesetja Kganyago warning of downside risks to economic growth. He also warned of further ratings agency action, following the downgrade of SA’s sovereign credit rating by two major agencies. Moody’s, the last of the big three, is expected to give its decision on SA in the next week or two. "With further ratings decisions imminent, risks remain for a further depreciation against the backdrop of continued global and domestic political uncertainty," Kganyago said, referring to the rand’s strength. He said the currency had been supported, however, "by a more favourable current account outlook, following a significant narrowing of the deficit in the final quarter of last year". At 9.38am ...
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