Picture: THINKSTOCK
Picture: THINKSTOCK

LOCAL bonds were marginally softer late on Friday due to a softer rand, after the dollar gained traction on the euro after recent declines.

The greenback retreated after US Federal Reserve chairwoman Janet Yellen indicated on Wednesday that there would be fewer US rates increases than initially anticipated.

Only two rates increases are expected this year now, instead of four.

At 3.36pm, the benchmark R186 bond was bid at 9.200% and offered at 9.190% from a previous close of 9.160%.

The middle-dated R207 was bid at 8.660% and offered at 8.650% from Thursday’s close of 8.640%.

Nedbank CIB analysts said the South African Reserve Bank had added momentum to the post-Fed risk rally as the rand strengthened to R15.0650 to the dollar in New York trade today. The rand, however, declined again in Asian trade to R15.22 to the greenback.

There would be significant event risk at the weekend with the African National Congress’s national executive committee, the analysts said.

This, together with all the looming public holidays, should lead to position squaring, and liquidity would be very tight next week, the analysts said.