South African bonds held steady on Friday morning, but were poised to end the week weaker, in line with the rand. Local bonds and the rand were caught up in local politics this week, which outweighed the fundamental economic data. But the price action in local bonds was relatively contained compared with the rand, which dropped up to 2% against the dollar after Public Protector Busisiwe Mkhwebane’s recommended that the Reserve Bank’s mandate be adjusted. Analysts have pointed to a recent slide in the oil price as acting as a potential buffer against a volatile rand. The price of international benchmark Brent crude has lost about 11% to $45 a barrel so far in June. At 9.55am, the R186 was bid at 8.525% from Thursday’s 8.565% and the R207 at 7.465% from 7.47%. The rand was at R12.9583 to the dollar from R12.9719.
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