* Rand, govt bond supported by risk rally
* Reserves fall for third straight month on stronger dollar
* Reuters Econometer due at 0930 GMT, manufacturing at 1100
GMT,
JOHANNESBURG, June 7 (Reuters) – South Africa’s rand and
bonds were firmer on Thursday on the back of an emerging market
rally that saw the rand briefly break through 8.30 resistance on
investors’ hopes European leaders may find a plan to tame debt
problems in region.
But with no complete resolution yet in sight, the global
outlook remains uncertain and the rally could be short lived.
The rand hovered above its next resistance level,
trading at 8.31 to the dollar by 0600 GMT. It tested 8.30
resistance, which may open up 8.28, dealers said.
Central bank data showed reserves fell to $47.672 billion in
May, likely due to the stronger dollar last
month.
Yields on government bonds were down with the firmer
currency but may moderate with the announcement of Treasury’s
switch auction plans for next week.
The 2015 yield dipped 1.5 basis points to 6.255
percent while the 2026 issue dropped three basis
points to 8.26 percent.
Continued…
