South African bonds were firmer on Friday at midday on the stronger rand, as foreign inflows into the market continued at a brisk pace. Foreign investors purchased R87m worth of South Africa government bonds on Thursday, thereby supporting the rand. "Both foreign and local interest was upbeat," analysts at Nedbank Corporate and Investment Banking said. At 11.35am the R186 was bid at 8.52% from 8.565% and the R207 was at 7.425% from 7.47%. The rand was at R12.9266/$ from R12.9719/$. "In a global fixed-income context, emerging-market debt offers an attractive credit yield enhancement and a measure of diversification against rising interest rates in developed markets," said Futuregrowth interest-rate market analyst Rhandzo Mukansi said. However, China’s deteriorating growth trajectory could be a major source of systemic emerging-market risk, Mukansi said. UK bonds were weaker as the pressure for interest-rate increases in the UK rose amid an increased inflationary environment. The 10-y...
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