Johannesburg - South Africa's rand steadied against the dollar on Tuesday with traders expecting it to hold within its current 9.75-85 band ahead of long awaited US non-farm jobs data later in the day.
Government bonds extended the previous day's losses ahead of a local weekly auction and as some market players saw the off chance of increased issuance when Finance Minister Pravin Gordhan presents his medium-term budget forecasts on Wednesday.
By 08:50 SA time the local currency traded at 9.8440 to the greenback, barely changed from Monday's close in New York at 9.8345.
The yield for the 2026 secondary market benchmark added three basis points to 7.88 percent and the 2015 paper at the shorter end of the curve ticked up 1.5 basis points to 5.815 percent.
Gordhan will probably widen his budget deficit forecast for 2013/14 to 4.9 percent of GDP from the 4.6 percent seen in February, a Reuters poll of 15 economists showed.
Some market watchers say the Treasury might adjust its borrowing plans slightly higher, to plug the shortfall. - Reuters