South African bonds were firmer at midday on Wednesday after the ANC sent the strongest signal yet that President Jacob Zuma is about to resign. The party took a decision late on Tuesday to postpone the special national executive committee (NEC) meeting, scheduled for Wednesday to February 17-18. On Tuesday afternoon National Assembly speaker Baleka Mbete had announced that the state of the nation address had been postponed. The rand firmed through R12 to the dollar, benefiting local bond yields. At 11.31am the R186 was bid at 8.405% from 8.470% and the R207 at 6.970% from 7.050%. Local bonds showed little reaction to trade in US bonds, which weakened as yields rose further on Wednesday ahead of the expected rate increases by the US Federal Reserve in 2018. The 10-year treasury was last seen at 2.7625% from 2.706%. Most emerging market government financing needs are low, with the bulk of emerging government debt issued in local currency, Capital Economics analysts said. "This limits...
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