Johannesburg – The South African bond market was firmer in afternoon trade on Monday after the rand recovered as there seemed to be a resolution on the horizon of the recent industrial action in the platinum mining sector.
“The rand strengthened on hopes that we could see a resolution of the Marikana strike action as the two parties seem willing to compromise. That boosted the rand‚ which led to buying of the short end. This then pulled the long end with it‚” a local bond trader said.
At 15:38 local time‚ the benchmark R157 bond was trading at 5.485% from 5.560% at noon and 5.540% at Friday’s close. The R207 was bid at 6.570% and offered at 6.555% from Friday’s close of 6.595%‚ and the R186 was trading at 7.570% from 7.600% at its previous close.
The rand was bid at R8.1885 from Friday’s close of R8.1978 and Thursday’s close of R8.2365.
