Johannesburg - The rand was weaker against the dollar and
bond yields edged higher on Monday, weighed by a combination of global risk
wariness and concerns over the ailing local economy.
The yield on the three year benchmark bond added two basis
points to 5.59% in early trade and that for 14-year paper rose 3.5 basis points
to 7.605%.
The rand was down 0.36% at R8.43 by 07:04 GMT compared with
Friday's close.
Mounting labour tension in the platinum mining sector after
violence left 44 people dead at Lonmin's Marikana mine this month had
exacerbated concerns around the local economy's structural problems, Rand
Merchant Bank said in a note.
"There is a risk of ongoing rand weakness, even if
global markets provide a reasonably good backdrop. Resistance on dollar/rand is
at R8.42, a break of which opens up R8.50," RMB said in its market note.
Growth data due out on Tuesday, if weaker than expected,
could reinforce market expectations for another rate cut to aid growth after
the Reserve Bank unexpectedly trimmed the benchmark repo rate by 50 basis
points to 5.0% last month.
Foreign rate agreements are pricing in a 60% likelihood of another reduction over the next six months, market watchers said.
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