South African bonds were stable on Wednesday morning while the rand traded in narrow ranges. The rand, which bonds usually track, made a slight recovery after closing 1.31% lower on Monday, after ratings agency Moody’s cited its concerns about SA’s economic growth trajectory and political uncertainty. Local bonds subsequently succumbed to the pressure. Local markets will wait to hear what the National Assembly Speaker Baleka Mbete will say about a secret ballot in the vote of no confidence in President Jacob Zuma. Rand Merchant Bank analyst Deon Kohlmeyer said a secret ballot decision would probably not affect the outcome but would be positive for rand and bond sentiment in the short term. On the international front‚ markets will closely watch US nonfarm jobs data, due out on Friday. At 9.09am the R186 government bond was bid at 8.615% from Tuesday’s 8.610% and the R207 at 7.385% from 7.380%. The rand was at R13.2385 to the dollar from R13.2737.
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