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Thursday, December 29, 2016

Bonds firm on buoyant rand with dollar weakening and commodities demand rising

The South African bond market was firmer on Thursday morning, taking its cue from a stronger rand.

The rand hit a two-week best level against the dollar of R13.7749 in early trade on Thursday
, supported by greater global demand for commodities and the dollar’s slide against a basket of major currencies due to year-end profit-taking.

A short trading week coupled with a lack of major news or data releases is expected to keep the local bond market subdued until next year.

Offshore investors sold a net of more than R1.1bn in bonds last week, according to JSE securities exchange data released on Wednesday.

At 9.02am, the benchmark R186 bid was bid at 8.920% from 8.955% on Wednesday while the R207 was bid at 8.145% from 8.175% previously.

BDLIVE

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