Local bonds firmed further on Friday morning, at the end of a strong week, breaking through a level that one analyst said was important to build momentum. The rand was steady at its recent stronger levels. The currency, which bonds usually track, has been on a firmer footing since the release of better than expected gross domestic product (GDP) data earlier in the week. GDP growth for the second quarter came in at 2.5%, from a previous 0.7% contraction, and showing the economy exited a technical recession, as expected. The GDP figure supported local bonds, which have been firmer since the release of the data. Rand Merchant Bank analyst John Cairns said 8.36% was an important level for bonds to break through to keep momentum going. "Given the strong run recently, it would need another big event to send rates lower from that level." At 9.19am the R186 benchmark government bond was bid at 8.35% from Thursday’s 8.41%. The rand was at R12.8185 to the dollar from R8.41%.
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