South African government bonds were weaker on Thursday on a softer rand, as global bond investors adapted to rising US yields, which show little sign of abating any time soon.After crossing 3% earlier this week, some analysts reckon the yield on the benchmark US 10-year could touch 3.2% in the short term. It rose to a seven-year high of 3.093% on Wednesday, and reached 3.11% in intraday trade on Thursday, Dow Jones Newswires said."A move above 3% has been cited as a psychologically significant level that could make equities appear less attractive," the newswire said.UK gilt yields also rose on a firmer pound amid reports that Prime Minister Theresa May’s Conservative government had given the green light to a customs arrangement whereby the UK would retain closer links with the EU than previously expected.FxPro analysts said that that could mean the UK would stay in the EU customs union beyond 2021.The government agreed on a new "backstop" earlier this week to avoid a hard border in ...
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.