South African bonds were slightly weaker on Monday morning while the rand was steady against the dollar, ahead of the tabling of the medium-term budget policy statement later in the week. The rand, which bonds usually track, has stabilised after weakening sharply at the weekend following rumours that Deputy President Cyril Ramaphosa would be replaced by Nkosazana Dlamini-Zuma. Finance Minister Malusi Gigaba is due to present his midterm budget speech on Wednesday. Sasfin analysts said the finance minister had not "struck the right chord" with the investor community yet and this would result in significant risks ahead of the speech, which could stifle activity. "With no local data today, bonds will be sensitive to currency moves and any local political news," the analysts said. At 9.03am the R186 government bond was bid at 8.830% from 8.825%. The rand was at R13.7060 to the dollar from R13.6802.
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