South African bonds were weaker at midday on Wednesday as the market turned negative on President Jacob Zuma’s appointment of a judicial commission of inquiry into state capture. Chief Justice Mogoeng Mogoeng selected deputy chief Justice Raymond Zondo to head the commission. After initially trading positively on the news, the rand was weaker as the political implications became clearer. Bonds followed a softer rand in response. "There is plenty of politicking going on, as Zuma’s announcement comes on the eve of the first ANC national executive committee meeting where his future is sure to be discussed," analysts at Nedbank Corporate and Investment Banking said. At 11.30am, the benchmark R186 was bid at 8.60% from 8.54% and the R207 was at 7.295% from 7.210%. The rand was at R12.4136 to the dollar from R12.3403. Local bonds were also affected by weaker US treasuries, with the 10-year yield rising above 2.50% on Tuesday; it was last seen at 2.5517% from 2.4794%.
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