South African bonds were weaker shortly before midday on Friday, as investors poured into safe-haven assets following a spike in political risk. A terror attack in Spain, concerns over the stability of US President Donald Trump’s administration, and new concerns over North Korea, helped turn sentiment negative, analysts said. Trump’s decision to disband his business advisory councils on Wednesday‚ after business executives protested against his failure to condemn racism, also raised further doubts as to the success of his administration. Much of the reason for a rise in US confidence earlier in 2017 was due to promised tax reforms and infrastructure spending, said Rand Merchant Bank analyst Isaah Mhlanga. The collapse of various councils with business created risks that policy reform may not materialise, with the terror attack in Spain adding to investor unease, he said. On Thursday, senior US officials again stressed that a military response to North Korean aggression remained on t...
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