Government bonds were largely unchanged with the market's eyes on PMI data out at 0900 GMT. The PMI slipped back into contractionary territory in December at 49.4, an indication that this key sector is still struggling.

Another reading below 50 would suggest interest rates may have to remain lower for longer and be supportive of bonds.

The rand was trading at 7.81 to the dollar at 0640 GMT, not far from Tuesday's New York close of 7.82.

"What we are seeing is a continuation of last week's risk-on scenario and commodity currencies are doing well," said Jim Bryson, chief dealer at Rand Merchant Bank.

"We are a higher yielding currency and the world is semi-stable so on that basis foreigners are looking to come back to the rand."

The rand might weaken a bit but as long as it does not break support at 7.84 it will remain in ranges, he said.

Against the euro, the rand is a bit firmer but off a near 5-month high of 10.1185. Bryson said there is space for further gains if it maintains levels below support at 10.20.

On bonds, the yield on the 2015 issue was up two basis points to 6.48 percent and the 2026 bond yield ticked up 1.5 basis points to 8.205 percent.

Tradition Analytics said in a note bonds "still look overbought, and the R157 yield still has room to climb further in the short term".

Stocks futures were down, suggesting a lower open on the bourse. The JSE's blue chip Top-40 March futures contract was down 0.47 percent before the 0700 GMT start of trade.

Copyright Reuters, 2012