Rand slightly firmer, pressure looms

Johannesburg - The rand ended a two day losing streak on Monday, although downside risks were in focus after China, a key importer of South African commodities, released weaker than expected manufacturing data.

By 08:55 the rand traded at R12.0400/$, 0.12% stronger than its Friday close in New York.

Government debt prices fell, with the yield on the benchmark instrument maturing in 2026 adding 4.5 basis points to 8.0%.

Traders and analysts said the local unit was likely to turn weaker - extending last Thursday and Friday's losses - after data showed China's factory activity suffered the fastest drop in a year in April.

READ: China's struggles argue for stimulus

"The rand and local bonds remain under considerable pressure from the run on global bonds and the risk is for a further sell-off this week in what is likely to be volatile trade," RMB market analyst John Cairns said.

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