SOUTH African bonds continued on their firmer path late on Tuesday, in line with the rand, after stronger-than-expected second quarter GDP numbers provided support. Statistics SA earlier released second-quarter GDP figures that showed the economy grew a seasonally adjusted and annualised 3.3%. Market expectations were for growth of 2.7%. The economy contracted 1.2% in the first quarter. At 3.22pm the benchmark R186 bond was bid at 8.775% and offered at 8.755% from 8.840% at the previous close. The R207 was bid at 8.060% and offered at 8.050% from Monday’s close of 8.125%. The rand was at R14.1899 to the dollar from R14.3834 at Monday’s close. Global investors now await the European Central Bank meeting on Thursday, with no change in its quantitative easing programme expected. The central bank’s bond-buying programme, which was instituted last year, was officially scheduled to run until March 2017. Most analysts expect the purchases to continue for considerably longer, Dow Jones Newswires reported. Figures released on Monday showed the central bank had purchased €1-trillion ($1.12-trillion) in sovereign debt to date, it said. The US 10-year treasury bond was little changed at 1.5956% from 1.6050% previously, after the US celebrated the Labor Day public holiday on Monday.

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