RTRS:S.Africa rand looks to break 7.78 resistance vs dollar
* Rand supported by bond inflows, looking at 7.78
* C.bank deputy governor says unsecured lending not a risk
* Eskom to sell inflation-linked bond
JOHANNESBURG, April 25 (Reuters) - South Africa's rand and government bonds were slightly firmer on Wednesday with bond inflows supporting the rand, which looked to finally break through a resistance barrier.
The rand was at 7.7826 at 0650 GMT, not far off its close in New York but showing a firmer bias for the day.
Analysts say if the rand keeps pushing stronger, it could eventually manage to convincingly break 7.78 resistance and test 7.72 levels.
"We've come to test the 7.78 level again. It hasn't gone through quite yet but I think there's a good chance that it does go through," said a Johannesburg-based trader.
"Last week's report by Citibank is quite big support for the rand and that's what has taken it through from the 7.90 levels through to the 7.80's," he said, adding if the rand fails at 7.78, it may bounce hard to 7.85.
Citigroup announced last week local government bonds could be included in their prominent World Government Bond Index in October, which has since attracted huge offshore inflows.
Central bank Deputy Governor Lesetja Kganyago said on a local radio station that growth in South Africa's unsecured lending "does not pose a systematic risk to the banks," as it constitutes less than 1 percent of their assets, seeking to calm concerns about the rising trend.
A central bank report on financial stability is due at 0800 GMT.
Analysts will also keep an eye on the European Central Bank authorities speaking during the day and then the United States Federal Reserve interest rate policy statement in the evening.
Yields on government bonds were steady at 6.48 percent on the 2015 and 8.15 percent on the 2026 issues.
Power utility Eskom is looking to sell 250 million rand ($32 million) in an inflation-linked bond due in 16 years while the government will announce auction plans for next week's weekly sale on Tuesday.
Due to a national holiday on Friday, the government's next inflation-linked bond auction will be on May 4. ($1 = 7.7976 South African rand) (Reporting by Xola Potelwa; Editing by Jon Herskovitz)
