Bonds show weaker bias as Gordhan charges weigh on the rand

Finance Minister Pravin Gordhan is the focus of a Hawks probe into a SARS spy unit.  Picture: Gallo Images
Finance Minister Pravin Gordhan is the focus of a Hawks probe into a SARS spy unit.
Picture: Gallo Images

South Africa’s bond market showed a slightly weaker bias on Monday morning in line with the rand hit by fraud charges levelled at Finance Minister Pravin Gordhan last week.

The yield on the R186 bond was at 8.86% in early trade‚ from Friday’s 8.81%

“The data calendar is light today and trading is expected to remain muted as the market awaits further political developments‚” said Rand Merchant Bank analysts Michelle Wohlberg.

Gordhan is due to appear in court in November in connection with charges relating to the early retirement of former South African Revenue Service deputy commissioner Ivan Pillay.

Nebank Corporate and Investment Banking said the saga unfolding around the finance minister would continue to weigh on the rand and that would affect bonds.

 

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