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Friday, January 13, 2017

US TREASURIES: Bonds firm in quiet trade and supported by a stable rand

The South African bond market was firmer late afternoon on Friday in quiet trade ahead of the US long weekend, with Monday being Martin Luther King day.


Local bonds were supported by a stable rand at about
R13.50/$, and to a lesser extent by US treasuries which were flat in late trade on Friday after a good run following US president-elect Donald Trump’s disappointing press conference on Wednesday.

Dow Jones newswires reported that the bond rout in US treasuries had stalled over the past few weeks, reflecting some concerns that policy details under a Trump administration may fail to live up to market expectations. It also reported that US government bonds continue to offer more attractive yields compared with their peers in Europe and Japan.

At 3.32pm the R186 was bid at 8.63% from 8.69% and the R207 was bid at 7.915% from 7.955.
The yield on the US 10-year Treasury note was at 2.3629% from 2.3589%.
 
BDlive
 
 

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