South African government bonds were slightly weaker on Friday morning as the market focus turned to the ANC elective conference taking place this weekend. The market is expected to trade cautiously ahead of the conference, where Deputy President Cyril Ramaphosa and ANC MP Nkosazana Dlamini-Zuma will contest the party’s leadership. At 9.01am, the rand was slightly firmer against the dollar, trading at R13.49/$ from R13.51/$ and steady against the euro and the pound. The yield on the 10-year benchmark bond was weaker at 9.275% from Wednesday’s 9.2300%. The market is in favour of Ramaphosa because it is believed he will restore good governance to state institutions and state-owned enterprises. Standard Bank trader Warrick Butler said Ramaphosa was more business focused and the ratings agencies would find him appealing. The new leader of the ANC is expected to be announced on Sunday, however, uncertainty over the voting process could affect when the results are announced.
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