Johannesburg – The South African bond market was firmer in afternoon trade on Tuesday on a stronger rand.
“Trading has been thin‚ but the tone is firmer on the back of a stronger rand‚ which was boosted by the euro‚” a local bond trader said.
At 3:50 pm‚ the benchmark R157 bond was trading at 5.385% from 5.420% at Monday’s close and 5.360% at Friday’s close. The R207 was bid at 6.560% and offered at 6.530% from its previous close of 6.585%‚ and the R186 was trading at 7.710% from 7.790% at its previous close.
The rand was bid at R8.7162 to the dollar from Monday’s close of R8.7941 and Friday’s close of R8.7275.
Widespread labour unrest is worsening SA's economic imbalances‚ and threatens to stop the hesitant recovery in private sector employment in its tracks‚ says Rian le Roux‚ chief economist at Old Mutual Investment Group (Omigsa).
Recent disruptions in the labour market and a weaker rand has prompted Omigsa to revise its growth forecasts for the economy down to 2.3% this year and 2.7% next year‚ from 2.5% and 3.0% previously‚ Le Roux told reporters on Tuesday. The new estimates are below market consensus.
Interest rates are likely to be held steady through next year and 2014‚ although there was a risk that the Reserve Bank may cut them again if growth turned out to be much weaker than expected‚ he added.