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Johannesburg - South African bonds remained firm but were off the day's best levels in midday trade on Tuesday.
By 11:50, the benchmark R157 bond was trading at 7.535% from its previous close of 7.580%. The R207 was bid at 8.300% and offered at 8.285% from 8.340% and the R186 was bid at 8.485% and offered at 8.465% from 8.520%.
The rand was bid at 7.0030 to the dollar from its previous close of 7.0040.
"It was a good auction. The R203s did well and the R207s cleared at market. We might inch lower today, around the R157s, but it's very quiet. Liquidity is thin, the underlying sentiment I pick up is that the market is more bid than offered," said a local trader.
At its weekly auction, the National Treasury received bids totalling R3.25bn for one billion rand worth of R203 bonds and bids totalling R2bn for R1.1bn worth of R207 bonds.
Meanwhile, Standard Bank Group [JSE:SBK] analysts said in a report that foreign portfolio involvement in South African debt had seemingly entered a lull, which had set a weaker tone for South African rates more generally.
"However, this evening's Monetary Policy Review could create some interest for the rest of the week," the analysts added.
Foreigners were net sellers of R285.082m of South African bonds including repo transactions on Monday after net purchases of R52.896m of local bonds on Friday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R166.289bn on Monday from R59.894bn on Friday.
Foreigners were net sellers of R470.009m of South African bonds excluding repo transactions on Monday after net purchases of R53.266m of local bonds on Friday.
For the year to date, foreigners have been net buyers of R19.817bn 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 buyers of R11.692bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
By 11:50, the benchmark R157 bond was trading at 7.535% from its previous close of 7.580%. The R207 was bid at 8.300% and offered at 8.285% from 8.340% and the R186 was bid at 8.485% and offered at 8.465% from 8.520%.
The rand was bid at 7.0030 to the dollar from its previous close of 7.0040.
"It was a good auction. The R203s did well and the R207s cleared at market. We might inch lower today, around the R157s, but it's very quiet. Liquidity is thin, the underlying sentiment I pick up is that the market is more bid than offered," said a local trader.
At its weekly auction, the National Treasury received bids totalling R3.25bn for one billion rand worth of R203 bonds and bids totalling R2bn for R1.1bn worth of R207 bonds.
Meanwhile, Standard Bank Group [JSE:SBK] analysts said in a report that foreign portfolio involvement in South African debt had seemingly entered a lull, which had set a weaker tone for South African rates more generally.
"However, this evening's Monetary Policy Review could create some interest for the rest of the week," the analysts added.
Foreigners were net sellers of R285.082m of South African bonds including repo transactions on Monday after net purchases of R52.896m of local bonds on Friday, Bond Exchange of South Africa statistics show.
Nominal cumulative volume was R166.289bn on Monday from R59.894bn on Friday.
Foreigners were net sellers of R470.009m of South African bonds excluding repo transactions on Monday after net purchases of R53.266m of local bonds on Friday.
For the year to date, foreigners have been net buyers of R19.817bn 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 buyers of R11.692bn of local bonds. In 2010 they bought net R44.541bn worth of bonds.
