South African government bonds were slightly softer shortly before midday on Friday, in line with the rand, amid some risk-averse global trade. Markets were digesting further political news emanating out of the White House, while locally, focus is on a long-awaited Moody’s pronouncement next week Friday. Moody’s is the only major ratings agency to keep SA’s sovereign credit rating above junk status; should it downgrade SA further, government bonds will fall of global bond indices. The market had not fully priced in the possibility of a downgrade, but government and business had probably done enough to buy time for now, said Rand Merchant Bank bond analyst Deon Kohlmeyer. At 11.30am, the R186 was bid at 8.12% from 8.11% and the R207 at 6.725% from 6.720%. The rand was at R11.9242 to the dollar from R11.9006.
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