Bonds weaken despite firmer rand, as Cabinet reshuffle rumours linger
South African bonds remained weaker shortly before midday on Friday, failing to track a firmer rand amid profit-taking, and concern over possible further domestic political ructions. Friday’s confirmation by the ANC that presidential hopeful Nkosazana Dlamini-Zuma would be sworn in to Parliament gave credence to some of the speculation around a possible Cabinet reshuffle, and at the very least confirms that the President is surrounding himself with more loyalists, said Sasfin Securities Bond analysts. Ratings agency Moody’s conference beginning on Wednesday — its 12th annual sub-Saharan Africa summit in Johannesburg — could also prompt some market-moving comments, analysts said. Rand Merchant Bank analyst Gordon Kerr said that the strength seen in bonds on Friday was a function of investors taking long positions before the weekend. Despite rumours of a reshuffle at the weekend, it looked unlikely that the Treasury would be touched ahead of the ANC’s December elective conference, sai...
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