The South African bond market was weaker on Wednesday afternoon despite a slightly firmer rand. The rand, which bonds usually track, was resilient despite the range of factors affecting markets. Locally, Reserve Bank governor Lesetja Kganyago applied to the High Court in Pretoria on Tuesday to review and have set aside Public Protector Busisiwe Mkhwebane’s recommendation to amend the Bank’s constitutional mandate. Recent comments from US and European Central Bank officials have added to market volatility. Rand Merchant Bank analyst Gordon Kerr said the recent sharp sell-offs in the local bond market, on the back of political headlines, have been taken in stride, with losses clawed back as the global and local environment remained supportive of yields. At 3.32pm, the R186 was bid at 8.64% from 8.58% and the R207 was at 7.56% from 7.515%. The rand was at R12.9746 to the dollar from R13.0151.
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