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Bonds drift ahead of US non-farms

Feb 03 2012 12:53 I-Net Bridge

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Johannesburg - South African bonds were little changed from earlier levels in midday trade on Friday as the market awaited key US non-farm payroll data due later in the afternoon.

A Dow Jones survey of economists' forecasts US unemployment in January to remain unchanged from the previous month at 8.5%, while forecasts for non-farm payrolls expects 125,000 jobs to have been created in January, after 200,000 new jobs the previous month.

"US data has been improving steadily recently, which has allayed fears that this economy will also slide into a recession this year. However, the data remains weak overall, and this week has revealed some disappointing outcomes," Standard Bank analysts said earlier.

At 11:50, the benchmark R157 bond was bid at 6.400% and offered at 6.390%, from its previous close of 6.385%. The R207 was bid at 7.600% and offered at 7.580% from a previous close of 7.580% and the R186 was trading at 8.070% from its close of 8.050%.

The rand was bid at 7.6320 against the dollar from its previous close of 7.6371.

"The rand's been all over the place, it got down to 61 overnight, was at about 65 when we walked in this morning. Bonds lifted a bit higher on some profit-taking, but now that the euro is powering ahead slightly and the rand's back down to 63 we're trading around 39 again. So we're up and down and just following the currencies really," a trader said.

Foreigners were net sellers of R1.455bn of South African bonds including repo transactions on Thursday after net purchases of R1.311bn of local bonds on Wednesday, data released by the JSE shows.

Nominal cumulative volume was R83.372bn on Thursday from R63.195bn on Wednesday.

Foreigners were net sellers of R1.456bn of South African bonds excluding repo transactions on Thursday after net purchases of R1.311bn of local bonds on Wednesday.

For the year to date foreigners have been net buyers of R6.549bn of local bonds, excluding repo transactions. In 2011 they were net buyers of R47.359bn worth of local bonds, excluding repo transactions.

In the year to date foreigners have been net buyers of R5.717bn of local bonds including repo transactions. In 2011 they bought R37.501bn of local bonds.

 
 
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