Rand slumps 2% as economy enters recession

Rand fell more than 2% on Tuesday and government bonds fell, after the economy slipped into a recession in the second quarter.

At 09:44 GMT, the rand traded 2.25% weaker at 15.21 versus the dollar.

The economy contracted by 0.7% in the second quarter, pushing the country into recession after a revised 2.6% contraction in the first quarter, data from Statistics South Africa showed.

Analysts polled by Reuters had expected second-quarter economic output to rise by 0.6%. 

Yields on the benchmark bond maturing in 2026 rose 11 basis points at 9.11%.