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Johannesburg - South African bonds were weaker in midday trade on Wednesday, tracking the softer local currency.
By 11:42, the benchmark R157 bond was trading at 7.820% from its previous close of 7.775%, while the R207 was bid at 8.590% from its previous close of 8.515%. The R186 was trading at 8.820% from its previous close of 8.770%.
The rand was bid at R6.7463 to the dollar from its previous close of R6.7358.
"We're a few points weaker and it's all currency driven. I think there are a couple of stops being triggered. The ultra-long end of the curve is also offered following Treasury's announcement of the R214s in next week's auction. We're looking at 84-85 toppish on the R157s for the rest of the day," said a local trader.
The National Treasury announced that it would auction R1.3bn worth of R208 bonds and R800m worth of R214 bonds on April 19, at its weekly auction.
Earlier, Standard Bank analysts noted in a report that Tuesday's poor auction results had raised questions about the sustainability of long-end flattening.
"A dismal R186 take-up yesterday morning halted the multi-session compression in the bond curve, led by the 15-year point. While this may prove merely a temporary stumbling block to a lower, flatter bond curve, we have our doubts. If to re-emerge shortly, this bullish momentum would be viewed as creating opportunity to build short/steeper positions, more than anything else," the analysts noted.
Foreigners were net buyers of R2.064bn of South African bonds including repo transactions on Tuesday after net purchases of R3.147m of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R136.034bn on Tuesday from R54.501bn on Monday.
Foreigners were net buyers of R968.584m of South African bonds excluding repo transactions on Tuesday after net purchases of R295.250m of local bonds on Monday.
For the year to date, foreigners have been net sellers of R0.321bn 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 R5.391bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:42, the benchmark R157 bond was trading at 7.820% from its previous close of 7.775%, while the R207 was bid at 8.590% from its previous close of 8.515%. The R186 was trading at 8.820% from its previous close of 8.770%.
The rand was bid at R6.7463 to the dollar from its previous close of R6.7358.
"We're a few points weaker and it's all currency driven. I think there are a couple of stops being triggered. The ultra-long end of the curve is also offered following Treasury's announcement of the R214s in next week's auction. We're looking at 84-85 toppish on the R157s for the rest of the day," said a local trader.
The National Treasury announced that it would auction R1.3bn worth of R208 bonds and R800m worth of R214 bonds on April 19, at its weekly auction.
Earlier, Standard Bank analysts noted in a report that Tuesday's poor auction results had raised questions about the sustainability of long-end flattening.
"A dismal R186 take-up yesterday morning halted the multi-session compression in the bond curve, led by the 15-year point. While this may prove merely a temporary stumbling block to a lower, flatter bond curve, we have our doubts. If to re-emerge shortly, this bullish momentum would be viewed as creating opportunity to build short/steeper positions, more than anything else," the analysts noted.
Foreigners were net buyers of R2.064bn of South African bonds including repo transactions on Tuesday after net purchases of R3.147m of local bonds on Monday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R136.034bn on Tuesday from R54.501bn on Monday.
Foreigners were net buyers of R968.584m of South African bonds excluding repo transactions on Tuesday after net purchases of R295.250m of local bonds on Monday.
For the year to date, foreigners have been net sellers of R0.321bn 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 R5.391bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
