Bonds little changed despite firmer rand, as focus shifts to the US
South African bonds were stable shortly before midday on Thursday, as the rand benefited from a lack of new negative domestic headlines. The dollar remains on the back foot, as concern mounts over the progress over US tax reforms. Later on Thursday, the US Congress is expected to vote on its version of the tax bill, what would cut corporate taxes to 20% from 35%, among other things,. US consumer price inflation data and unemployment numbers are also due on Thursday. The rand has clawed back some of the losses it sustained earlier in the week — it weakened to R14.57/$ on Monday — after concern that ratings agencies would downgrade the country’s sovereign currency debt at the end of November. An overnight equities rally should bode well for local assets, and bonds could be expected to trend slightly stronger throughout the course of the day, said Rand Merchant Bank analyst Michelle Wohlberg. At 11.30am the benchmark R186 government bond was bid at an unchanged 9.39% and the R207 had f...
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