YIELDS on South African government bonds fell to four-month lows before the four-year bond gave up its price gains and ended softer while the 15-year paper remained supported to the offical JSE close.
The rand came off earlier highs to end weaker against the dollar and stocks also ended lower, led by African Bank ahead of its first-half results on Monday, while euro zone debt worries knocked overall sentiment.
Bonds gained during the session, helped by softer-than-forecast inflation data from earlier in the week, which has the market thinking interest rates will be kept lower for longer, and continued offshore interest in local debt. The yield on the four-year bond ended the week slightly higher, adding 1 basis point to 7.55%, while that on the 15-year debt fell 3,5 basis points to 8,465%.
The rand traded at a session low of 6,94 to the dollar, off a close of 6,8655 on Thursday.