November 3, 2003

By Reuters

Johannesburg - Bond yields weakened on Friday, hit by profit taking and a retracement in US treasuries. Analysts said domestic yields were close to the bottom.

The local currency was steady despite a weaker euro, trading in a R6.8775 to R6.9333 range to the dollar. By 5pm it was at R6.8907.

By 5pm the yield on the 150 bond was 4 basis points weaker at 7.92 percent, while the yield on the R153 bond was 6 basis points weaker at 8.89 percent.  

US treasury prices softened on Thursday on news the US economy grew at its fastest rate in nearly two decades.

Emerging market bond prices also edged lower after Moscow froze control of oil giant Yukos, setting off a wave of selling of Russian sovereign debt.

South Africa is broadly classified as an emerging market but the sophistication of its capital markets means it can also be hit by events in the US and Europe.