South African Rand Steady After Government Launches Infrastructure Bonds
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The South African rand was little changed on Tuesday as investors digested the government’s debut infrastructure and development finance bond auction and awaited this week’s U.S. Federal Reserve decision. At 12:58 GMT, the rand traded around 17.06 per dollar, broadly flat on the previous close.
National Treasury said it raised 11.795 billion rand ($693 million) via new 10‑year and 15‑year infrastructure and development finance bonds, after bids topped 26 billion rand for a 2.2‑times subscription rate. It sold 6.996 billion rand of 10‑year paper at 8.575% and 4.799 billion rand of 15‑year notes at 9.13%, as part of a plan to channel more than 1 trillion rand into public infrastructure over the next three years. Analysts said global interest-rate uncertainty continues to cap rand gains as markets position for an expected Fed cut and scrutinise incoming U.S. data.
On the Johannesburg Stock Exchange, the Top‑40 index slipped 0.3%, while the yield on the benchmark 2035 government bond rose 5.5 basis points to 8.51%.
