In the past few weeks the rand has moved from the levels of around R6,50 to the US dollar to around $ to the dollar, a result of increased dollar strength, the recent moderation in commodity prices and an expectation of an early increase in US interest rates.
When the bond market is correct, its preemptive pricing should be rewarded by the expected movement in the federal funds rate. To fail to so reward it would be to undermine the ability and willingness of the bond market to engage in such preemptive pricing.