South African bonds pared earlier gains on Thursday afternoon, tracking the stronger rand as investors bet that US monetary policy tightening would be slower than previously expected. Global equity markets lifted on Wednesday in response to comments made by US Federal Reserve chair Janet Yellen, which were widely interpreted as dovish. Yellen said US interest rates needed not move significantly higher to reach neutral levels - where they neither restrained nor accelerated economic growth. At 3.30pm the yield on the R186 was at 8.735% from 8.785%, and the R207 was at 7.61% from 7.655%. The rand was at R13.2106 to the dollar from R13.25. The US 10-year bond was at 2.3087% from 2.3205%. Recent oversubscribed SA corporate and metro bond auctions may indicate further gains in the bond market, said Rand Merchant Bank analyst Deon Kohlmeyer. On Wednesday the City of Cape Town issued R1bn in 10-year bonds after receiving almost R5bn in bids. Eskom’s ten-year bond strengthened on Thursday. T...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.