South Africa's rand gains as global bond market calms
- South Africa government bonds also recovered. The yield on the benchmark 2030 government bond, which touched its weakest level in four months on Friday, was down 4 basis points at 9.105% in early deals.
JOHANNESBURG: South Africa's rand recovered on Monday from a four-week low hit against the US dollar in the previous session as global bond markets calmed after last week's sell-off.
At 0620 GMT, the rand traded at 14.9800 against the dollar, 0.93% firmer than its close on Friday - when it slipped to its weakest since Feb. 1.
"A rebound in the bond market, following staggering spikes in yields over the course of last week brought some calm to the market in the overnight session, with the rand clawing back some lost ground," said Bianca Botes, executive director at Citadel Global.
Some semblance of calm returned to bond markets on Monday after yields surged last week in anticipation of a swift economic rebound and on bets that global central banks will need to tighten policy much earlier than they have been forecasting.
South Africa government bonds also recovered. The yield on the benchmark 2030 government bond, which touched its weakest level in four months on Friday, was down 4 basis points at 9.105% in early deals.
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