South African bonds were slightly firmer on Tuesday morning, taking their cue from the rand, which has regained some of the ground lost to the dollar recently. But the rand and bonds remain vulnerable to the release of the US Federal Reserve’s September minutes, due on Wednesday. With the probability of an interest rate increase in the US now put at just above 90%, funds are likely to start shifting from emerging markets to developed countries. Sasfin Securities analysts said the rand was among currencies affected by the Turkish-US diplomatic dispute. Foreign money was still flowing out of the local bond market, they said. At 9.11am the R186 government bond was bid at 8.745% from Monday’s 8.775%. The rand was at R13.7516 from R13.8161.
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