South African bonds were slightly weaker at midday on Monday as the rand slipped against the dollar.
The public holiday in the US was partly to blame for the relative calm in the bond market, as it was affecting trading volumes.
Standard Bank’s executive head of foreign exchange spot trading, Warrick Butler, said, however, that local bond yields continued to strengthen on asset purchases, and that the benchmark R186 had "now broken some decent medium-term support at 8.75%".
He said it was likely that yields would continue to move lower with the next target being the August 16 lows of 8.36%.
"For this to happen of course we will need to see 10-year US treasuries move below the 2.30% support level. Should that move transpire, then the equivalent move in the currency would see a move to last year’s best level of R13.1500," said Butler.
The yield on the R186 bond crept up to 8.66% from 8.63% on Friday, as the rand weakened to R13.5778 to the dollar from 13.5729.
The R207 bond was at 7.94% from 7.92%.
The public holiday in the US was partly to blame for the relative calm in the bond market, as it was affecting trading volumes.
Standard Bank’s executive head of foreign exchange spot trading, Warrick Butler, said, however, that local bond yields continued to strengthen on asset purchases, and that the benchmark R186 had "now broken some decent medium-term support at 8.75%".
He said it was likely that yields would continue to move lower with the next target being the August 16 lows of 8.36%.
"For this to happen of course we will need to see 10-year US treasuries move below the 2.30% support level. Should that move transpire, then the equivalent move in the currency would see a move to last year’s best level of R13.1500," said Butler.
The yield on the R186 bond crept up to 8.66% from 8.63% on Friday, as the rand weakened to R13.5778 to the dollar from 13.5729.
The R207 bond was at 7.94% from 7.92%.
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