JOHANNESBURG: South African government bonds and the rand currency ended the week firmer, recouping some losses as emerging markets globally got a reprieve from heavy selling on Friday.
Yields on the benchmark 2026 issue fell 15 basis points to 8.50 percent.
The rand gained over 1 percent to 10.1670/dollar, recovering from a four-year low of 10.4450 hit in the previous session.
Dealers said players had digested better-than-expected Chinese manufacturing data from Thursday and an extraordinary $60 billion currency intervention plan by Brazil to lift the real off near 5-year lows.
"That's helped to put a bid on emerging market currencies and emerging market bonds, so we've seen a snap-back after a very strong sell-off," said Vivienne Taberer, fixed income portfolio manager for Investec.
"It's very difficult to say whether this is a turn or whether this is a correction, but it feels for the moment that we've started a correction and there's a bit more to come."
However the recovery may be limited by negative sentiment around labour strikes in sectors of Africa's biggest economy, with an auto manufacturers strike in its fifth day, and some construction workers and gold miners threatening to down tools from next week.
Domestic data such as second quarter economic growth, credit demand and trade numbers next week will also be keenly watched.
Economists expect Q2 GDP to accelerate to 3.3 percent quarter-on-quarter, coming off a surprise 0.9 percent print in the first quarter.
Economists polled by Reuters said they expected the GDP components to have made positive contributions to economic growth in Q2.
"Quarter-on-quarter growth in the secondary sector was likely to have reverted to positive territory, backed by improvements in the manufacturing sector," Standard Bank's economists said, adding that improved activity by wholesalers and retailers would also help.
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