Bonds follow rand weaker as dollar gains on rate hike expectation
But no major bond or rand moves are expected ahead of the local medium-term budget policy statement next week
South African bonds were weaker on Friday afternoon in line with a softer rand, as increased expectations of a US interest-rate hike in December boosted the dollar. The rand retreated to its softest intraday level of R14.0821 to the dollar after touching a firmest level of R13.8973/$ earlier on Friday morning, tagging bonds along. No major bond or rand moves were expected ahead of the local medium-term budget policy statement next week. At 3.32pm the R186 was bid at 8.830% from 8.770% on Thursday. The R207 was bid at 8.090% from 8.030% on Thursday. Local bond prices did strengthen this week in line with the rand, which recouped some of the losses sustained after the National Prosecuting Authority brought fraud charges against Finance Minister Pravin Gordhan, last week. Gordhan’s position seems to have strengthened, which reduces some concern about a possible sovereign credit downgrade of SA, NKC Research said. While local bonds and the rand have been boosted recently by positive sen...
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