Bonds maintain stronger bias in lead-up to Bank’s interest-rate meeting
17 July 2017 - 16:26
South African bonds held steady at much stronger levels on Monday afternoon, taking their lead from a sharp recovery in the value of the rand. The yield on the benchmark R186 bond, which broadly reflects the cost of government borrowing, was little changed on the day at 8.640% from 8.665% on Friday. The performance is a lot better when compared with a week ago, when the yield on the R186 hit 9%. "The benefit of SA’s open, deep and liquid bond market is that the government has ready access to funding at reasonable interest rates," Old Mutual Multi-Managers analysts Dave Mohr and Izak Odendaal said.
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