South African bonds gained substantially on Monday afternoon, taking their cue from a stronger rand. The yield on the benchmark R186 bond dipped to its lowest point since late October, as the rand powered through R12.85 to the dollar for the first time since March. The rally in the local fixed-income market and the rand reflected optimism that Deputy President Cyril Ramaphosa will win the ANC presidential race. Ramaphosa is facing Nkosazana-Dlamini Zuma, in a battle that has been described as a make-or-break event. "The price action is the telling you that Ramaphosa will emerge the new leader and I hope that the market is not going to be disappointed when the results come out," said Ashley Dickinson, head of fixed income dealing at Sasfin Wealth.
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