JOHANNESBURG, July 4 (Reuters) - South Africa's rand steadied against the dollar on Friday and is expected to hold its gains although importer demand could push the currency weaker, market watchers said.

The blue chip Top-40 September futures contract <ALSIc1> was up 0.49 percent ahead of market opening at 0700 GMT, suggesting a slightly positive start for the local bourse, after stocks fell to their weakest level since late-March on Thursday.

The rand <ZAR=D3> was trading at 7.75 against the dollar around 0640 GMT, not far off its last New York close of 7.7550 on Thursday.

"Our view is that 7.70/dollar is bottomish but if it breaks 7.65 level it could go stronger," said a dealer at Rand Merchant Bank.

Independent market analysts ETM said the rand could find support as focus shifts away from (global) growth worries to yields but importer demand could push it to 7.80 in the session.

After reaching a one-month high of 12.0553 <EURZAR=R> to the euro in the previous session, the rand was last trading at 12.18 to the single currency.

Government bonds were slightly firmer. The yield on the 2015 bond <ZAR157=> was down 1.5 basis point at 10.575 percent while that on the 2036 issue <ZAR209=> fell 2 basis point to 10.08 percent.

ETM said the recent recovery might not be sustained and could be a function of short covering.

"Whilst consolidation in the shape of the curve is expected ahead of the next (rate) decision... one should not dismiss the potential for one more bout of inversion before the curve begins to normalise in a more sustained manner," ETM said.

The central bank has increased rates by 500 basis points since June 2006 and is widely expected to raise again in August. (Reporting by Phumza Macanda)