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Johannesburg – South African bonds were firm in afternoon trade on Thursday despite a weaker rand and a R57.5bn July fiscal deficit.
“We have been trading firmer on foreign buy orders the whole day. The rand has not been a factor‚ while the fiscal deficit is volatile on a monthly basis‚ so what is important is the trend and that remains on track‚” a local bond trader said.
At 16:10‚ the benchmark R157 bond was trading at 5.470%‚ from 5.510% at Wednesday’s close. The R207 was bid at 6.580% and offered at 6.560% from Wednesday’s close of 6.610%‚ and the R186 was trading at 7.440% from 7.505%.
The rand was bid at R8.4517 per dollar from Wednesday’s close of R8.4049.
The National Treasury said that revenue declined by 3% in July to R39.9bn from a year ago‚ while expenditure rose by 14.4% to R97.5bn. This mean that the deficit was R57.5bn compared with R44.1bn in July 2011.
Revenue has risen by 10.5% in the first four months of the fiscal year‚ while expenditure increased by 9.5% over the same period resulting in a deficit of R87bn compared with R81.3bn.
Foreigners bought a net R1.596bn of South African bonds including repo transactions on Wednesday after net purchases of R1.052bn of local bonds on Tuesday‚ data released by the JSE show.
Nominal cumulative volume was R48.101bn on Wednesday from R205.127bn on Tuesday.
Foreigners were net buyers of R1.791bn of local bonds excluding repo transactions on Wednesday after net purchases of R546.194m of local bonds on Tuesday.
For the year to date foreigners have been net buyers of R67.321bn 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 R66.962bn of local bonds including repo transactions. In 2011 they bought R37.501bn worth of local bonds.
“We have been trading firmer on foreign buy orders the whole day. The rand has not been a factor‚ while the fiscal deficit is volatile on a monthly basis‚ so what is important is the trend and that remains on track‚” a local bond trader said.
At 16:10‚ the benchmark R157 bond was trading at 5.470%‚ from 5.510% at Wednesday’s close. The R207 was bid at 6.580% and offered at 6.560% from Wednesday’s close of 6.610%‚ and the R186 was trading at 7.440% from 7.505%.
The rand was bid at R8.4517 per dollar from Wednesday’s close of R8.4049.
The National Treasury said that revenue declined by 3% in July to R39.9bn from a year ago‚ while expenditure rose by 14.4% to R97.5bn. This mean that the deficit was R57.5bn compared with R44.1bn in July 2011.
Revenue has risen by 10.5% in the first four months of the fiscal year‚ while expenditure increased by 9.5% over the same period resulting in a deficit of R87bn compared with R81.3bn.
Foreigners bought a net R1.596bn of South African bonds including repo transactions on Wednesday after net purchases of R1.052bn of local bonds on Tuesday‚ data released by the JSE show.
Nominal cumulative volume was R48.101bn on Wednesday from R205.127bn on Tuesday.
Foreigners were net buyers of R1.791bn of local bonds excluding repo transactions on Wednesday after net purchases of R546.194m of local bonds on Tuesday.
For the year to date foreigners have been net buyers of R67.321bn 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 R66.962bn of local bonds including repo transactions. In 2011 they bought R37.501bn worth of local bonds.
