SOUTH African bonds retained some of their recent gains on Friday after the US Federal Reserve left interest rates unchanged on Wednesday, boosting emerging-market currencies such as the rand and bonds in turn.

At 11.29am, the R186 was bid at 8.520% and offered at 8.510% from Wednesday’s 8.520%. The R207 was bid at 7.800% and offered at 7.750% from 7.780%.

The rand was at R13.5765/$ from R13.6514.

TreasuryOne head of dealing Wichard Cilliers said the US 10-year yields dropped sharply from mid-week highs traded at before the Fed decided on Wednesday to keep interest rates on hold.

The US 10-year bond was last seen at 1.6099% from 1.621% previously.

In Europe, German 10-year bund yields also fell about 10 basis points further into minus territory to trade at -0.093% from Wednesday’s close of 0.005% close before the Fed announcement.

Japanese bonds saw the 10-year bond yield fall further into negative territory to trade at -0.050%; the long-term 30-year yields also dipped lower but remained positive.

The US 10-year note was last seen at 1.6124% from 1.6210%.