South African bonds were softer on Monday afternoon, as the rand briefly weakened through R12 to the dollar, and US bond yields continued to rise.The US 10-year treasury yield rose above 2.7% for the first time since 2014.The dollar recovery was aided by the rising US treasury yields, but this recovery remained modest, said BK Asset Management foreign exchange director Boris Schlossberg.The rand had held onto most of its pre-weekend gains on Monday‚ but sentiment in the bond market was expected to remain cautious‚ thanks to inherent political risks and budget nerves‚ said Sasfin Securities analysts.Local sentiment was slightly negative following Moody’s decision on Friday to downgrade Eskom’s long-term corporate family rating and zero coupon bonds, to B1 from Ba3.Eskom risks having its bonds removed from trade on the JSE, with the embattled state-owned company expected to release financial results on Tuesday.A Moody’s research note on Monday also suggested that the City of Cape Town...
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