Bonds continue to track weaker rand, albeit off worst levels
By Tuesday afternoon, bonds had pared some of their earlier losses on the day, taking their cue from a mild recovery in the rand, but remained weaker. At 3.30pm, the R186 benchmark bond was bid at 8.9% from Monday’s 8.86%, and the R207 at 7.745% from 7.71%. The rand was at R13.5473 to the dollar from Monday’s R13.4860, but was off its worst intraday level of R13.63. Bonds usually track the rand. Analysts said local politics had moved the market but focus was on speeches from central bank officials this week. US Federal Reserve chairperson Janet Yellen was scheduled to appear before the US Congress on Wednesday and Thursday. The rand, together with other emerging-market currencies, has been under pressure as investors increasingly price in monetary policy tightening. While a combination of international and local factors were weighing on the rand‚ it seemed domestic issues had affected it more markedly in the past few weeks‚ TreasuryOne analysts said. On Monday‚ Public Protector Busi...
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