Bonds were slightly weaker in late trade on Tuesday in line with a weaker rand as global markets were in risk-off mode‚ dragged weaker by an oil sell-off that began on Monday.
The price of Brent crude was down 3.2% at $32.98 a barrel in afternoon trade as investor concerns about a global supply glut flared up.
Global and local purchasing managers index (PMI) data released on Monday showed that global economic growth‚ including that of SA‚ was slowing‚ which also weighed on market sentiment.
At 3.25pm‚ the benchmark R186 was bid at 9.370% and offered at 9.350% from Monday’s close of 9.335%.
The middle-dated R207 was bid at 8.850% and offered at 8.825% from a close of 8.820% previously.
Steep declines in the oil price have hit equity markets hard this year as investors fear it might signal slowing demand from the world’s largest energy consumers.
Investors are now awaiting the Chinese PMI statistics on Wednesday and the US nonfarm payroll numbers on Friday for further market direction.
- © BDlive 2016
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