South African bonds were firmer on Monday afternoon, tracking the rand, which benefited from a weaker dollar and optimism President Jacob Zuma is on his way out. Analysts said while speculation as to Zuma’s future continued, his exit now just seemed to be a matter of time. The dollar remained at a three-year low to the euro on Monday, under pressure as investors begin to price in the possibility the European Central Bank will begin tapering its bond purchases. Added to this, the euro gained after Angela Merkel’s Christian Democratic Union party and the Social Democratic Party reached agreement to form a coalition government. In the US, agreement must be reached this week in Congress to pass a continuing budget resolution or face the prospect of a government shutdown. "Most market participants believed that Congress will reach a compromise and pass the legislation. However, after the rancour of the past few days, the risk of a government shutdown has increased and that factor could b...
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