South African bonds were firmer on Monday afternoon as the results of the first round of the French presidential election drove market sentiment‚ with centrist presidential candidate Emmanuel Macron leading right-wing rival Marine le Pen.
Rand Merchant Bank analyst Gordon Kerr said the low volatility period and a weaker dollar supported emerging markets‚ with the rand benefiting greatly.
The rand strengthened 1.05% to the dollar in morning trade. Bonds usually track the rand.
Kerr said the weaker dollar‚ combined with foreign support for local bonds‚ resulted in yields being pushed lower‚ “seemingly ignoring the entire negative political and ratings news of the past few weeks”.
At 3.31pm‚ the R186 was bid at 8.595% from Friday’s 8.64% and the R207 at 7.49% from 7.52%.
Bonds firm as French political developments favour the rand
South African bonds were firmer on Monday afternoon as the results of the first round of the French presidential election drove market sentiment‚ with centrist presidential candidate Emmanuel Macron leading right-wing rival Marine le Pen.
Rand Merchant Bank analyst Gordon Kerr said the low volatility period and a weaker dollar supported emerging markets‚ with the rand benefiting greatly.
The rand strengthened 1.05% to the dollar in morning trade. Bonds usually track the rand.
Kerr said the weaker dollar‚ combined with foreign support for local bonds‚ resulted in yields being pushed lower‚ “seemingly ignoring the entire negative political and ratings news of the past few weeks”.
At 3.31pm‚ the R186 was bid at 8.595% from Friday’s 8.64% and the R207 at 7.49% from 7.52%.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos