South African bonds tracked the weaker rand on Tuesday morning, as the market waited for direction from either local political developments or global events. The rand was slightly weaker amid a dollar recovery, that followed a political settlement to the US government shutdown. Both the local currency and South African bonds had gained on Monday due to increasing market confidence in SA’s economic outlook. Although the ANC shot down speculation that it had taken a resolution to remove President Jacob Zuma, analysts said it was increasingly clear the party’s president, Cyril Ramaphosa, was consolidating his position within the party. This decreased the possibility that division within the ANC would hobble policy reform efforts. Although emerging-market bonds had been buoyed recently, focus would now shift to commentary from the Bank of Japan (BoJ) on Tuesday and European Central Bank (ECB) on Thursday, said Sasfin Securities bond analysts. Locally, consumer price inflation (CPI) due ...
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