South African govt bonds gain on weak GDP data

JOHANNESBURG: South Africa's government bonds firmed against the dollar on Tuesday after weaker-than-expected economic growth data that could prompt the Reserve Bank to consider cutting rates.

Data showed gross domestic product grew by 1.4 percent in the third quarter, compared with market expectations for a 1.8 percent rise.

The yield on the 2015 bond fell 10.5 basis points on the day. It was last at 6.885 percent, from 7.01 percent prior to the GDP data.

The 2026 bond yield was down 7.5 basis points to 8.545 percent.

In a volatile session, the rand regained its earlier losses. It was up more than 1.3 percent on the day to 8.2750 against the dollar.