South African bonds were marginally stronger on Tuesday afternoon, as the euro again strengthened against the dollar, in volatile trade. The dollar was weaker against most emerging-market currencies, reversing earlier gains, with the euro finding some support from positive European GDP numbers for 2017. The prior moves in the market were driven by risk-aversion flows following a sharp sell-off in Asian equities, said BK Asset Management analysts, which supported the dollar. The dollar remained oversold, and some sort of sustained bounce was overdue, the analysts said. In the absence of significant data, market focus is on the forthcoming risk-events this week, including US President Donald Trump’s state of the union address. Analysts expect cautious trade in local bonds until the major risk event this week — the US Federal Reserve monetary policy statement on Thursday. At 3pm, the benchmark R186 was bid at 8.520% from 8.535%, and the R207 at 7.110% from 7.145%. The rand was at R11.9...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.