Bonds slightly firmer as rand recovers lost ground on weaker dollar
South African bonds were slightly firmer on Tuesday afternoon as the rand clawed back lost ground on a weaker dollar. Analysts described the market as "fickle" after foreign investors bought R6.5bn of SA bonds last week. "Despite going into a very volatile political environment, and ahead of credit ratings reviews that may warrant some risk-off trade, the opposite could happen as a result of the previous sell-off," analysts at Nedbank Corporate and Investment Banking said. However, this may turn on any negative headlines or political news, Nedbank said. Local bonds were sold off after Finance Minister Malusi Gigaba’s medium-term budget policy statement in October, which revealed a more than R50bn fiscal shortfall. S&P Global Ratings and Moody’s are to announce their rating reviews on November 24. Moody’s is the only ratings agency that has SA one notch above subinvestment grade. A number of positive political factors also supported the market, including a speech by Deputy President ...
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