Rand firmer, gain­ing 2% while bonds weaker

Weekend Argus (Saturday Edition) - - BUSINESS -

THE RAND ended a tough week on a firmer foot­ing against the dol­lar yes­ter­day, gain­ing 2 per­cent within a seven- day range as it fol­lows the euro’s course, while govern­ment bonds cor­rected and yields rose on the bench­marks.

In a show of its volatil­ity and thin mar­ket con­di­tions, the rand traded in a wide 7.95 to 8.32 range this week, pulled in dif­fer­ent di­rec­tions by de­vel­op­ments in the debt­plagued euro zone. It firmed as much as 8.0965 against the dol­lar yes­ter­day.

Govern­ment bonds were weaker with the yield on the four-year bench­mark adding five ba­sis points to 6.77 per­cent while the 15-year bond rose six ba­sis points to close at 8.49 per­cent. Yields on the bench­mark bonds were at three-week lows last week.

“Bonds are track­ing what’s hap­pen­ing in Europe and we had a ter­ri­ble week on the rand. The weak­ness is mainly to do with the story of the ECB eas­ing,” a trader said.

Trea­sury bills ma­tur­ing in 91 days were un­der-sub­scribed yes­ter­day for the first time since De­cem­ber 2009 as the global mar­kets’ rout sees in­vestors close their books ear­lier than usual and leave mar­kets thin. – Reuters

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