South African bonds were weaker shortly before midday on Monday as the rand lost more than 2% to the dollar, after a volatile Asian trading session. The local currency experienced a short-lived overnight rally, strengthening to R12.66 to the dollar, as local political uncertainty persists. Bonds usually track movements in the rand. The national executive committee of the ANC met at the weekend where a motion of no confidence in the president was debated. Rand Merchant Bank analyst John Cairns said the uncertainty provided scope for large rand moves in either direction. "The potential for further gains in bonds is proving limited as the market struggles to find reasons to be overly bullish down at these levels." At 11.55am the R186 was bid at 8.575% from Friday’s 8.49% and the R207 at 7.495% from 7.41%.
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