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Johannesburg - South African bonds were a touch firmer in early morning trade on Friday, with not much activity expected ahead of the long weekend.
By 08:50, the benchmark R157 bond was trading at 7.890% from its previous close of 7.900%, while the R207 was flat at 8.795% from its previous close. The R186 was also unchanged from its previous close of 8.980%.
The rand was bid at R7.0590 to the dollar from its previous close of R7.0813.
"The guys might be a bit tired after all the excitement this week. On Thursday, we got the impression that the market kicked a bit on the back of the auction. The curve also flattened - there were quite significant moves on the shorter end. We'll keep an eye on the rand today, there's also the inflation-linked auction but overall it should be a quiet session," a local bond trader said.
Meanwhile, Standard Bank said in a note on Friday morning that with continued volatility generated by global developments, positions in SA's rates were likely to be thinned before the long weekend.
"While bonds have been responding in a continuous manner to the elevation in energy prices and simultaneous rand weakness, another day of higher longer-dated yields does appear probable," it said.
Foreigners were net sellers of R625.122m of South African bonds including repo transactions on Thursday after net purchases of R2.608bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R77.679bn on Thursday from R68.102bn on Wednesday.
Foreigners were net sellers of R504.549m of South African bonds excluding repo transactions on Thursday after net purchases of R2.844bn of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R15.170bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net sellers of R17.339bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 08:50, the benchmark R157 bond was trading at 7.890% from its previous close of 7.900%, while the R207 was flat at 8.795% from its previous close. The R186 was also unchanged from its previous close of 8.980%.
The rand was bid at R7.0590 to the dollar from its previous close of R7.0813.
"The guys might be a bit tired after all the excitement this week. On Thursday, we got the impression that the market kicked a bit on the back of the auction. The curve also flattened - there were quite significant moves on the shorter end. We'll keep an eye on the rand today, there's also the inflation-linked auction but overall it should be a quiet session," a local bond trader said.
Meanwhile, Standard Bank said in a note on Friday morning that with continued volatility generated by global developments, positions in SA's rates were likely to be thinned before the long weekend.
"While bonds have been responding in a continuous manner to the elevation in energy prices and simultaneous rand weakness, another day of higher longer-dated yields does appear probable," it said.
Foreigners were net sellers of R625.122m of South African bonds including repo transactions on Thursday after net purchases of R2.608bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R77.679bn on Thursday from R68.102bn on Wednesday.
Foreigners were net sellers of R504.549m of South African bonds excluding repo transactions on Thursday after net purchases of R2.844bn of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R15.170bn worth of local bonds, excluding repo transactions. In 2010 foreigners bought net R57.064bn worth of local bonds, excluding repo transactions.
For the year to date for total transactions, including repo transactions, foreigners have been net sellers of R17.339bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
