Bonds little moved despite weaker rand

South African bonds were flat on Tuesday afternoon as the market awaited further direction and as the rand softened slightly.

Markets were waiting for US Federal Reserve Chair Janet Yellen’s address to Congress on Wednesday‚ which is bound to influence the dollar and subsequently the rand and local bonds.

Markets will be searching for any clues concerning the likelihood of further US interest rate increases this year.

At 3.30pm‚ the benchmark R186 bond was bid at 9.345% and offered at 9.330% from Monday’s close of 9.325%.

The middle-dated R207 was bid at 8.790% and offered at 8.780% from a close of 8.790% previously.

Investor uncertainty was likely to mount as they sought clarity concerning Ms Yellen’s testimony to Congress on Wednesday and Thursday‚ and President Jacob Zuma’s state of the nation address on Thursday‚ Barclays Research analysts said.

TMG Digital/BDlive