The South African bond market held steady on Tuesday morning despite the weaker than expected third-quarter GDP figures.
The local economy expanded 0.2% in the third quarter, down from the revised 3.5% growth in the second quarter. Trading Economics had expected growth of 0.6% on a quarter-on-quarter basis.
Ratings agencies, which recently kept the country’s foreign currency rating at investment grade, have pointed to the weak growth rate as one of the potential risks that could result in the loss of investment grade status in the future.
"Now that the local ratings season is finally over, with SA managing to come out relatively unscathed, we find bonds right in the middle of no man’s land again — happy to trade in narrow ranges," Rand Merchant Bank analyst Michelle Wohlberg said.
The yield on the R186 bond was at 8.950% in early trade, from 8.970% on Monday. The rand, which the bond market usually tacks, was at R13.7476 to the dollar.
Equally, the yield on the 10-year US treasury was broadly steady at 2.3806%, from 2.3858
by
The local economy expanded 0.2% in the third quarter, down from the revised 3.5% growth in the second quarter. Trading Economics had expected growth of 0.6% on a quarter-on-quarter basis.
Ratings agencies, which recently kept the country’s foreign currency rating at investment grade, have pointed to the weak growth rate as one of the potential risks that could result in the loss of investment grade status in the future.
"Now that the local ratings season is finally over, with SA managing to come out relatively unscathed, we find bonds right in the middle of no man’s land again — happy to trade in narrow ranges," Rand Merchant Bank analyst Michelle Wohlberg said.
The yield on the R186 bond was at 8.950% in early trade, from 8.970% on Monday. The rand, which the bond market usually tacks, was at R13.7476 to the dollar.
Equally, the yield on the 10-year US treasury was broadly steady at 2.3806%, from 2.3858
by
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