Bonds firm slightly despite worse-than-expected current account deficit
South African bonds strengthened slightly on Tuesday shortly before midday, with the market unaffected by slightly worse-than-expected current account data and calls for the Reserve Bank to ditch protecting the value of the rand. SA’s adjusted current account deficit widened to 2.1% in the first quarter of 2017 from 1.7% in the fourth quarter of 2016, the Reserve Bank said in quarterly bulletin on Tuesday. The R92bn deficit was above the R85bn forecast by economists in a Trading Economics survey. Capital Economics economist John Ashbourne said the widening of the current account remained "small by recent standards", which would help shield rand value. Market losses from local controversies, including surprise revisions to the Mining Charter last week and a call for constitutional change to the mandate of the Reserve Bank on Monday, are likely to be contained, Rand Merchant Bank analyst John Cairns said. At 11.30am the R186 was bid at 8.535% from Monday’s 8.55% and the R207 at 7.5% f...
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