South African bonds were slightly weaker shortly before midday on Tuesday, as the rand failed to extend gains made since Friday despite a weaker dollar environment. The dollar fell to a 14-month low against the euro on Tuesday after the Republican healthcare bill failed to get enough support, in the latest setback for US President Donald Trump’s administration. Replacing Obamacare was necessary for the Trump administration to unlock savings that could help fund tax cuts, said Rand Merchant Bank currency strategist John Cairns. It also served as a setback to confidence that other business-friendly policies would be implemented, he said. At 11.30am the benchmark R186 bond was bid at 8.64% from Monday’s 8.625% and the R207 was at 7.505% from 7.495%. The rand was at R12.9254 to the dollar from R12.9471. The euro had gained 0.55% to $1.1542. SA’s weekly government bond auction later on Tuesday comes after a local bond rally in the past week, which may have deterred some investors, Sasfin...
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