Publications
Partners
Johannesburg - South African bonds were up to eight basis points firmer in late trade on Friday, bolstered by a strong rand.
By 16:00, the benchmark R157 bond was trading at 7.760% from its previous close of 7.820%, while the R207 was bid at 8.615% from its previous close of 8.675%. The R186 was trading at 8.890% from its previous close of 8.970.
The rand was bid at 6.7103 to the dollar from its previous close of 6.7522.
"Bonds have moved in tandem with the stronger rand," a local bond trader said.
"The curve itself, however, is flattening, but that is no surprise given comments by the Reserve Bank on inflation," another trader added.
The seasonally adjusted Kagiso Purchasing Managers' Index (PMI) added 2.4 index points to hit a 13-month high of 57.2 in March from 54.8 in February.
The PMI, conducted on a monthly basis by the Bureau for Economic Research (BER) and the Chartered Institute of Purchasing and Supply, is a key leading indicator for activity in the manufacturing sector.
An index level of below 50 represents contraction in the manufacturing sector, while a reading of more than 50 signifies expansion.
Theo Vorster, a specialist consultant at Kagiso Trust Investments, said the sharp increase in the seasonally adjusted business activity index, from 51.6 to 59.7 points, was significant. He said the "robust" increase indicated a "ramp-up" of manufacturing production in March, possibly as a reaction to previous indications of improved demand conditions.
Foreigners were net buyers of R1.897bn of South African bonds including repo transactions on Thursday after net sales of R182.791m of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R55.773bn on Thursday from R65.609bn on Wednesday.
Foreigners were net buyers of R1.928bn of South African bonds excluding repo transactions on Thursday, after net sales of R346.525m of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R7.601bn 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 R9.799bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 16:00, the benchmark R157 bond was trading at 7.760% from its previous close of 7.820%, while the R207 was bid at 8.615% from its previous close of 8.675%. The R186 was trading at 8.890% from its previous close of 8.970.
The rand was bid at 6.7103 to the dollar from its previous close of 6.7522.
"Bonds have moved in tandem with the stronger rand," a local bond trader said.
"The curve itself, however, is flattening, but that is no surprise given comments by the Reserve Bank on inflation," another trader added.
The seasonally adjusted Kagiso Purchasing Managers' Index (PMI) added 2.4 index points to hit a 13-month high of 57.2 in March from 54.8 in February.
The PMI, conducted on a monthly basis by the Bureau for Economic Research (BER) and the Chartered Institute of Purchasing and Supply, is a key leading indicator for activity in the manufacturing sector.
An index level of below 50 represents contraction in the manufacturing sector, while a reading of more than 50 signifies expansion.
Theo Vorster, a specialist consultant at Kagiso Trust Investments, said the sharp increase in the seasonally adjusted business activity index, from 51.6 to 59.7 points, was significant. He said the "robust" increase indicated a "ramp-up" of manufacturing production in March, possibly as a reaction to previous indications of improved demand conditions.
Foreigners were net buyers of R1.897bn of South African bonds including repo transactions on Thursday after net sales of R182.791m of local bonds on Wednesday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R55.773bn on Thursday from R65.609bn on Wednesday.
Foreigners were net buyers of R1.928bn of South African bonds excluding repo transactions on Thursday, after net sales of R346.525m of local bonds on Wednesday.
For the year to date, foreigners have been net sellers of R7.601bn 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 R9.799bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
