South African bonds had strengthened shortly before midday on Tuesday, tracking the rand, which gained on the electoral lead held by ANC deputy president Cyril Ramaphosa. With all ANC provinces now having announced their preferred candidate, Ramaphosa leads with five provinces to Nkosazana Dlamini-Zuma’s four, or 1,862 to 1,309 branch votes. Not all branches voted, and this gap could be closer, but was unlikely to be closed, said Rand Merchant Bank currency strategist John Cairns. Local risk had also diminished somewhat after it was announced a determination on electricity tariffs would only be made next week, he said. Sasfin Securities fixed-income traders said that although the nomination outcome could be perceived to have lowered political risks, the broader investor base was likely to remain in wait-and-see mode. In late-morning trade the rand had come off its best levels, but remained firmer against sterling. The pound was under pressure after complications emerged in Brexit ne...
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