South African bonds were weaker on Friday at midday on a weaker rand amid expectations Finance Minister Malusi Gigaba will report a larger budget deficit in next week’s medium-term budget policy statement, as tax revenue has taken strain. Ratings agencies previously warned that a setback in the government’s stated policy of fiscal consolidation could affect ratings. "Political noise, and the looming mini-budget, have kept offshore investors on the side-line for now," analysts at Nedbank Corporate and Investment Banking (CIB) said. Bond trading was also influenced by global issues against the backdrop of a stronger dollar which saw the rand weaken. At 11.31am the R186 was bid at 8.84% from 8.785% and the R207 was at 7.49% from 7.445%. The rand was at R13.6877 to the dollar from R13.5661. The euro was at $1.803 from $1.1846. US government bonds gained on Thursday as investors sought assets perceived as relatively safe after tension heightened between the Spanish government and the Cat...
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