Bonds a tad weaker, ignore data

Johannesburg - Bonds were slightly weaker in opening trade in Friday despite the good global sentiment.

Dealers said they expected bonds to tack weaker from current levels.

By 08:33 the short-term government R154 bond was bid at 7.060% and offered at 7.040% after closing at 7.040% on Thursday and the medium-term R157 was at 8.170% from 8.155% at its previous close. The long-term R186 was bid at 8.975% and offered at 8.950% from 8.940% previously.

The rand was bid at R7.4717 to the dollar from R7.4755 at its previous close.

"There has been a sell off in bonds on the back of the rand setting new levels," a local bond trader said.

He said the reserve data released by the South African Reserve Bank (Sarb) on Friday morning had been ignored.

The Sarb's holdings of gold and foreign assets totalled R303.949bn at the end of February from R298.017bn at the end of January.

Foreigners were net buyers of R737.843m of bonds including repo transactions on Thursday, after net purchases of R2.965bn of local bonds on Wednesday, Bond Exchange of South Africa statistics show.

Nominal cumulative volume was R23.263bn on Thursday from R41.102bn on Wednesday.

Foreigners were net buyers of R737.381m of bonds excluding repo transactions on Thursday, after net purchases of R3.021bn of local bonds on Wednesday.

In the year to date foreigners have been net buyers of R8.673bn worth of local bonds, excluding repo transactions.

So far for total transactions, including repo transactions, foreigners have been net buyers of R11.714bn worth of bonds.

In 2009 foreigners were net buyers of R27.346bn worth of local bonds, excluding repo transactions, while for total transactions, including repo transactions, foreigners were net sellers of R2.424bn worth of bonds.

- I-Net Bridge