Publications
Partners
Johannesburg - The rand was a bit firmer against the dollar early on Thursday and government bonds were largely steady, with market focus firmly back on eurozone developments after a raft of positive local news buoyed assets earlier in the week.
The rand traded 0.2% firmer at R7.8295 in early morning trade, compared with Wednesday's close at R7.8452.
The yields on the benchmark three-year and 14-year bonds were each flat at 6.505% and 8.165% respectively.
Traders said the market was taking a breather after local assets rallied sharply on news that up to $9bn of portfolio flows could enter the country if Citigroup includes local bonds in its World Government Bond Index.
The main focus on Thursday will be on the results of a bond auction in Spain - a crucial test of investors' appetite for risk, which has been heavily battered in recent months by the prospect of debt defaults in some eurozone countries.
"(The) news flow has turned in favour of the rand recently (but) global factors could yet trip up the currency," said Standard Bank strategist Nomvuyo Guma.
"Apart from the Spanish auction, today's US data is likely to dictate the market's direction along with a slew of speakers, including the IMF's Lagarde."
The rand traded 0.2% firmer at R7.8295 in early morning trade, compared with Wednesday's close at R7.8452.
The yields on the benchmark three-year and 14-year bonds were each flat at 6.505% and 8.165% respectively.
Traders said the market was taking a breather after local assets rallied sharply on news that up to $9bn of portfolio flows could enter the country if Citigroup includes local bonds in its World Government Bond Index.
The main focus on Thursday will be on the results of a bond auction in Spain - a crucial test of investors' appetite for risk, which has been heavily battered in recent months by the prospect of debt defaults in some eurozone countries.
"(The) news flow has turned in favour of the rand recently (but) global factors could yet trip up the currency," said Standard Bank strategist Nomvuyo Guma.
"Apart from the Spanish auction, today's US data is likely to dictate the market's direction along with a slew of speakers, including the IMF's Lagarde."
