Bonds stable as market eyes results of ANC succession battle
South African bonds were mixed on Monday morning, but little changed, despite the slightly softer rand, which had gained significantly at the weekend.
The rand surged during the opening of the ANC national elective conference on Saturday, following increased optimism that ANC deputy president Cyril Ramaphosa would win the race for the party presidency.
The rand tested the R12.97 to the dollar level at the weekend, also boosted by an announcement by President Jacob Zuma that free tertiary education would be slowly phased in.
On Monday, the rand held to the R13 to the dollar level, as voting at the elective conference continued. Results were expected later on Monday.
Trading throughout the day would be dictated by who won the ANC presidential election, and investors would closely watch the headlines, said Rand Merchant Bank analyst Michelle Wohlberg.
It is also set to be a busy week in terms of data releases, while some progress in the passage of tax reforms in the US may boost the dollar.
There was increased optimism that the tax reform bills could be ratified by the Senate as early as Tuesday, and signed into law by US President Donald Trump by the end of the week, analysts said.
At 11.30am the bid on the benchmark government bond was at 9.02% from Friday’s 9.01%, while the R207 was bid at 7.81% from 7.835%.
The rand was at R13.0458 to the dollar from R12.9651.