* Rand firms within range against dollar
* Bonds supported by little supply
JOHANNESBURG Dec 23 (Reuters) – The rand was firm
against the dollar in early trade on Friday but looked to close
within last week’s range as thin trade and lack of market-moving
data see the local currency follow the euro’s moves.
Bonds are expected to continue their gradual gains in the
session as reinvestment of coupon payments and an illiquid
market pushes prices to a two-week high.
The local market is likely to wind down at around 1000 GMT
as dealers, having already squared up their positions, are
likely to take off early ahead of a long Christmas weekend.
South African markets will be closed on Monday and Tuesday
for national holidays.
The rand was 0.28 percent firmer against the dollar
at 8.1702 by 0637 GMT. It closed in the New York session at
8.1930.
Resistance for the currency is seen at the 8.07 to 8.10 area
and through 8 rand would mark a bear trend for the dollar.
Yields on the most heavily traded benchmark government bonds
have gradually fallen but were steady at 6.75 percent on the
2015 bond and 8.535 percent on the 2026 bond
.
“December and January coupon flows are plus-minus 12 billion
rand, if there was to be any re investment, it would pull yields
lower without any supply, coupled with a slightly stronger rand
and very little liquidity,” said Steve Arnold, a bond trader at
Investec Bank.
With a lot of investors said to have closed their books early
this year, Treasury has offered a reduced number of Treasury
Bills for auction this week. Results are due at 1000 GMT.
(Reporting by Xola Potelwa; editing by David Dolan)
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