* Rand retest of 8.30 may confirm weakness
* Bond yields retreating from record lows
JOHANNESBURG, July 9 (Reuters) – The rand extended losses on
Monday to its weakest level so far this month, pulled down by a
bleak outlook for global growth and dragging bond yields up from
recent lows.
The rand plunged through a 8.05-8.20 band that had held for
a week after poor U.S. jobs numbers on Friday. It extended those
losses on Monday to 8.3040, its weakest level since June 29.
Analysts say the 8.30 level should provide support for the rand
for now.
The local unit was at 8.2620 to the dollar at 1505
GMT, compared with a 8.2333 close in New York on Friday. Dealers
said Monday’s low volumes signalled a lack of conviction on the
dollar’s strength.
Reuters data showed volumes were similar to Wednesday’s
level when the U.S. market was closed for a national holiday.
The euro, the currency of South Africa’s biggest trading
partner, was knocked by rising Spanish and Italian bond yields
and caution about a meeting of the region’s finance ministers
later in the session.
Domestic bonds were little changed but had retreated from
records hit last week. Dealers see continued foreign buying
likely driving yields lower this week. However prices may be
overstretched.
The 2026 yield nudged up to 7.88 percent, away
from a 10-month low of 7.80 last week. The three-year bond
was at 5.955 percent, retreating from a lifetime
record of 5.91 percent.
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