Bonds edges weaker as rand declines in wake of budget policy statement
South African bonds were weaker at midday on Thursday, taking their cue from a rand that lost more than 15c to the greenback, following the local medium-term budget policy statement on Wednesday.Finance Minister Pravin Gordhan revised down SA’s growth projection for 2016 to 0.5% from a previous forecast of 0.9%.At 11.31am the yield on the R186 bond was unchanged at 8.88%. The yield on the R207 bond was at 8.13% from 8.11% on Wednesday.NKC Research analysts said the rand retreated sharply in the wake of the medium-term budget policy statement, as market players were concerned about the weak South African economic climate.Gordhan promised further fiscal consolidation by the Treasury, although the envisioned revenues in the coming year appeared to be overly optimistic, the analysts said.
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