JOHANNESBURG: South African government bond yields were at record lows on Friday as the hunt for high-yielding assets intensified, while the rand was steady against the dollar.
The currency was at 8.9505 to the dollar at 0650 GMT, in line with its close in New York on Thursday.
It had been supported by improved manufacturing and vehicle sales data this week.
South Africa's seasonally adjusted Purchasing Managers' Index expanded in April, edging above the key 50 level to 50.5, a survey showed on Thursday, although the manufacturing sector is still struggling.
New vehicle sales rose 19.5 percent to 50,290 in April, according to data also released on Thursday.
The yield on the 2026 government bond fell 4 basis points to 6.61 percent, while that on the 2015 paper shed 8 basis points to 5.02 percent - both record lows - as a rate cut by the European Central Bank on Thursday heightened demand for risky assets.
"Yields are trading at all-time lows on foreign demand and continuing interest for emerging market yield pick-up," said Steve Arnold, a bond trader at Investec.
"There's more downside here. As long as there's talk of quantitative easing out of the US and euro zone, yields will continue to fall."
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