South African bonds were weaker at midday on Friday as the post-Fed rally turned around on a softer rand that has lost ground despite the dollar remaining under pressure. The market was awaiting US GDP data for further movement with a weaker figure set to push the dollar even lower against the euro. The market is expecting a second-quarter growth number of 2.7% from a previous 1.40%. The dollar has lost 11.1% against the euro so far this year. Local bonds initially firmed on the marginally dovish stance from the US Federal Reserve earlier in the week, but have since been losing ground as US bond yields rise, and despite better-than-expected local producer price index (PPI) data released on Thursday. "The strength in bonds and the rand after the Federal open market committee decision to keep rates unchanged, proved to be short-lived as the market slowly ground higher," said Rand Merchant Bank analyst Michele Wohlberg. On Wednesday, US Federal Reserve officials voted unanimously to ke...
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