SOUTH African bonds were weaker in the late afternoon on Monday as the bond market tracked the softer rand.
Local trade data appeared to have no effect on the bond market. The trade balance recorded a R397m deficit after a revised R5.5bn (R5.8bn) surplus in June.
The growth in imports was more than that of exports, with data showing that exports increased by 4.7% on the month to R94.2bn, while imports rose 12% to R94.6bn.
The possibility of an impending rate hike in the US weighed on the rand.
Trading volumes were thin as UK markets are closed for a bank holiday.
At 3.33pm the benchmark R186 was bid at 8.350% and offered at 8.340% from Friday’s close of 8.330%.
The middle-dated R207 was bid at 7.850% and offered at 7.830% from a previous close of 7.825%.
At 3.33pm, the rand was trading at R13.3477 from a previous close of R13.2943 against the backdrop of a stronger dollar than last week.
Analysts said the smaller cumulative trade deficit supported views that the current account deficit would narrow this year compared with last year, which should go some way in supporting the rand.
This should be supportive of bonds, after the market weakened measurably early last week, before recovering towards the end of the week.
