Johannesburg - South African bonds and the rand fell after President Jacob Zuma was said to have bolstered his position by fending off calls from senior ruling party officials to quit.
The benchmark rand bond due December 2026 reversed gains, with the yield rising 12 basis points to 9.03% as of 12:10 in Johannesburg. The rand fell 1.6% to 13.8361 per dollar, heading for its weakest closing level since December 28, after strengthening as much as 1.2% earlier.
The reversals came after Zuma survived calls to resign by members of the African National Congress at a meeting of the party’s National Working Committee on Tuesday, according to two people with knowledge of the matter. The calls were sparked by Zuma’s decision to fire his finance minister and stack the Cabinet with loyalists, which led to Standard & Poor's cutting the nation’s credit assessment to junk on April 3.