South African bonds reversed earlier gains to trade weaker shortly before midday on Friday, as geopolitical risk weighed on global markets. North Korea said on Friday it could detonate a hydrogen bomb over the Pacific Ocean in response to President Donald Trump’s UN speech earlier this week, where he reiterated a tough stance against the isolated country’s nuclear and missile programmes. Trump had also indicated further sanctions were in the offing for North Korea. The key global event this week, the US Federal Reserve policy statement, passed on Wednesday, with the cupboard bare in terms of significant data releases on Friday. Given that geopolitical tension remained high, bonds should trade with a slight risk-off tone in the early part of the session, said Rand Merchant Bank analyst Michelle Wohlberg. Analysts said focus would now be on the rand and political risk, highlighted by Reserve Bank governor Lesetja Kganyago who surprised most analysts and economists on Wednesday when he...
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